NSU 457(b) Deferred Compensation Plan
The NSU 457(b) Deferred Compensation Plan is set up to provide deferred compensation primarily for a select group of eligible management and highly compensated employees, as defined in subsection 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974 and amended under section 457(b) of the U.S. Internal Revenue Code. This plan is designated to allow eligible employees to defer income above the 401(k) plan limits.
Eligibility
If your annual earnings exceed the threshold for eligibility, you will be notified by TIAA. In general, there is no advantage to participating in the NSU 457(b) Plan unless you are meeting your 401(k) contribution limits.
Matching and Vesting
The NSU 457(b) Plan does not provide an employer match on employee contributions. All contributions are immediately vested.
Contribution Limits
Annual limits are generally set by the IRS each year in October for the next calendar year and are listed below for the calendar year 2023, effective January 1st 2023 to December 31st 2023 and 2024, effective January 1st 2024 to December 31st 2024
| NSU 457(b) PLAN | CALENDAR YEAR 2023 CONTRIBUTION LIMITS |
|---|---|
| Employee Limit | $22,500 |
| NSU 457(b) PLAN | CALENDAR YEAR 2024 CONTRIBUTION LIMITS |
|---|---|
| Employee Limit | $23,000 |
Loans and Withdrawals
Loans and withdrawals are not available for the 457(b) Plan.
Distributions
Within 60 days after separation from employment you must elect one of the following options:
- Lump Sum Payment (100% vested immediately)
- Fixed Period Annuity or Installments
- Lifetime Annuity
- Required Minimum Distributions
- Once you separate employment, RMDs are mandatory, minimum, yearly withdrawals that generally must be taken starting in the year you turn age 72.
If you do not make an election within the 60-day window after separation of service, it will be paid as a Lump Sum Payment, which is a taxable event. The Plan does not allow for rollover distributions.
The NSU 457(b) Deferred Compensation Summary Plan Document provides in depth details on the plan.
Disclaimers
In the event of NSU filing for bankruptcy, 457(b) plan participants become general creditors of the NSU bankruptcy estate. NSU is not responsible for any investment advice provided to participants by Captrust and/or TIAA.
For any additional questions, please contact the benefits department at ohr-retirement@nova.edu