457(b) Deferred Compensation Plan
Rice University offers eligible employees the opportunity to contribute to a 457(b) deferred compensation. In order to be eligible, an employee must be earning at least 140% of the Social Security Wage Base, or $166,000.
The deferral of compensation is made with pre-tax dollars and the earnings accumulate on a tax-deferred basis. You choose how to invest the funds based on your risk tolerance. Please be sure to review and choose your investment options (currently TIAA is the only administrator for this plan) and designate a beneficiary (see below) for your investments. You may select from the investment choices for Rice’s 457 plan or may use the investment window (See below)
If you are not satisfied with these current selections, or if you are seeking a particular mutual or sector fund, you can also use the Investment Window (or brokerage account). This option will allow you to invest in any mutual fund that is available on that administrator's platform. Keep in mind that Rice will only report fees and expenses for the Vanguard Institutional Target Fund and the funds identified above under each administrator. It is ultimately your responsibility to monitor and choose funds that meet your particular needs and goals. We are providing you with a reasonable list from which to choose, and you also have the ultimate flexibility to choose any available mutual fund on each administrator's platform.
Please review the plan’s Frequently Asked Questions to learn about the unique features of this plan, and how it compares to our other retirement plan options.
For calendar year 2016, you may contribute up to $18,000 in deferred compensation, but we encourage you to maximize your 403(b) contributions prior to contributing to your 457(b) deferred compensation plan. Please see the FAQs for details on the risks of a 457(b) plan contribution.
A special catch-up contribution limit allows participants within three years of attaining their normal retirement age to contribute an extra amount if they contributed less than their allowable maximum in earlier years. For these participants, the maximum amount is the lesser of:
- twice the annual limit, or
- the annual limit, plus the total amount of underutilized contributions from prior years.
Contact a member of the Benefits Team for more information, including calculation of normal retirement age.
Please review the 457(b) Deferred Compensation Plan Document 2013 for more details about the plan.
Rice offers TIAA (800-842-2776) as the administrator for your 457(b) deferred compensation contributions.