457(b) Voluntary Pretax Contribution Plan • 2020 limits -$19,500, or $26,000 if age 50+. • Employee has the right to terminate or change 457(b) contributions at any time.
• All 457(b) employee contributions must be aggregated including employee contributions under the University of Cincinnati 457(b) plan. It is the responsibility of the employee to coordinate their contribution limits. • 457(b) contributions are to the same investment provider as 401(a) contributions (Fidelity or TIAA). • In the event no investment funds are selected, the default is a Fidelity Freedom Fund or TIAA Lifecycle Fund. • The participant is eligible for the distribution of funds only at termination of employment. The 10% early distribution penalty will generally not apply. • Beneficiary Designation: The employee must designate a beneficiary for the distribution of retirement account balances upon their death by contacting Fidelity or TIAA or making a designation online. Any beneficiary may be selected with no spousal waiver required. If no beneficiary is selected the default for
all plans is 100% spouse (if applicable) then 100% to estate. • There are no administrative fees applied to 457(b) accounts.
• At termination of employment you are eligible to elect a distribution of your funds. If your account balance (excluding rollovers) is $1,000 or less per retirement vendor and plan account, an automatic distribution will occur during the first quarter following the year of termination. • Hardship withdrawals, loans, and in-service withdrawals are not allowed.
Retirement 1 2
Revised 2/11/2020
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