Feature		457 Plan		401(k)Plan
Participation
Eligibility	All full-time State and participating University System employees. Part-time and hourly employees may or may not be eligible - check with your Human Resources office about benefit eligibility.  Employees of the Georgia Lottery Corporation are eligible for the 401(k) plan only.
Enrollments	Initial enrollment for eligible employees is available any time.
Rollovers	Employees may transfer assets into the 457 Plan only from other 457 Plans.  If you’d like to participate in 457 but want to rollover other plan assets into PSR, you can rollover non-457 Plan assets into the 401(k) Plan and still contribute through payroll deduction to the 457 Plan (there is no additional cost for maintaining a balance in both plans).  Upon termination, you may transfer assets to your new employer’s retirement plan or to an IRA, but there is no requirement to do so.		Employees may transfer assets into the 401(k) Plan from their previous employer’s 401(k), 403(b) or 457 Plan, or in some cases, from IRAs.  Upon termination, you may transfer assets to your new employer’s retirement plan or to an IRA, but there is no requirement to do so.
Contributions
Contribution Limits	Minimum - $30 per month for each plan Tax Year Contribution Limit 2002 $11,000 2003 $12,000 2004 $13,000 2005 $14,000 2006 $15,000 2007 $15,500 2008 $15,500 (percentage limitations no longer apply)
Catch-Up Contributions	Special 457 Plan Catch-Up Double the normal deferral limit for the 3 years prior to the year of retirement, if eligible			None in the  401(k) plan.
	Age 50 and over Additional Contribution Employees who are age 50 or older (or who will reach age 50 in the applicable tax year), may make "additional contributions." These are additional amounts beyond the normal contribution limit, as indicated below: Tax Year Additional Contribution 2002 $1,000 2003 $2,000 2004 $3,000 2005 $4,000 2006 $5,000 2007 $5,000 2008 $5,000 You cannot contribute to the Special 457 Catch-Up and the 457 Plan Age 50 Additional Contribution during the same tax year.
Changes to Current Contributions	Contributions can be started or stopped and amounts changed any time. Changes become effective the following calendar month.
Employer Contributions	None in the 457 plan.			None in the  401(k), except for Community Service Board and Georgia Lottery Corporation employees not eligible for the Employees’ Retirement System.
Withdrawals
Rollovers	Funds may be rolled into another 401(k), 457, 403(b) or IRA, however there is requirement to do.  You may keep the assets in PSR and maintain the tax-deferred status, as well as move assets among the various investment options.  457 assets that are rolled into anything other than another 457 Plan will be assessed the 10% early withdrawal penalty if a withdrawal is later taken prior to age 59 ½.
Withdrawal Rules	Generally, withdrawals are not allowed until separation from state service, except in the case of 401(k), in which withdrawals can be made on or after age 59 ½, even if still working. Withdrawals from all tax-deferred retirement Plans are required to begin at age 70 ½, if no longer working. For 401(k) Plans, if withdrawal is taken prior to age 59 ½, in most cases, a 10% penalty is assessed in addition to taxes. This penalty does not apply to the 457 Plan, unless 457 assets are rolled into a 401(k) Plan, 403(b) Plan or IRA and withdrawal is then taken prior to age 59 ½.
Spousal Consent	For 457 - Married participants don’t have to specify their spouse as beneficiary.			For 401(k) - Spouse must be named as beneficiary for entire account balance unless spouse submits a waiver.
Hardship Withdrawals	Must meet strict IRS requirements. Extremely difficult to qualify.
Loans	Not Available

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