Comparing 403(b) and 457 Plans

View Tax Sheltered Annuity Program-403(b) for general information about the savings program.

403(b) Plan 457 Plan
Eligibility All ACC Employees All ACC Employees
Employee Contribution Pre-tax dollars Pre-tax dollars
Employer Contribution None None
General Contribution Limits $22,500 IRS maximum (2023)
$20,500 IRS maximum (2022) $19,500 IRS maximum (2021)
$22,500 IRS maximum (2023)
$20,500 IRS maximum (2022)
$19,000 IRS maximum (2021)
Age 50 and Over Catch-Up Provision $7,500 (2023)
$6,500 (2022)
$6,500 (2021)
$7,500 (2023)
$6,500 (2022)
$6,500 (2021)
15-year Catch-Up Provision $3,000 N/A
3-years Prior to Retirement Age 65 Catch-Up N/A Up to $17,000 (may not be used simultaneously with age 50 catch-up)
Loans Allowed Yes, except as noted in 403(b) Plan document No
Financial Hardship / Emergency Withdrawals Medical expenses, primary residence, tuition-related educational fees, prevention of a foreclosure or eviction, funeral expenses or casualty loss. Medical expenses, casualty loss, emergency automobile repair or replacement, wage replacement, funeral expenses, child support, back taxes, attorney fees, or sudden and unforeseeable emergency.
Distributions Available at: Severance from employment, financial hardship, death, or age 59 1/2. Retirement, or severance from employment, death, at age 70 1/2 if still employed, or unforeseeable financial emergency.
Employee Withdrawals Taxable when withdrawn Taxable when withdrawn
Tax Penalties 10% penalty tax applies to distributions made prior to age 59 1/2. No penalty tax on a distribution at any age after severance from employment.
Distributions Must Begin No later than April 1 following the year in which participant turns 70 1/2, unless the participant is still employed.
Rollovers Yes, into another eligible retirement plan (including an IRA) when eligible for an eligible rollover distribution.

The 403(b) plan information does not apply to the Texas Optional Retirement Program (ORP).

To present information in this overview format we had to leave out some points, and even those points that are explained can’t be complete. We suggest you use this overview only as a starting point to begin thinking about what provisions might matter to you. We urge you to read carefully all of the information available for each plan or contract. This overview is not tax or legal advice. If you need legal advice, you should consult your lawyer. For additional details, please contact the ACC Benefits Office at

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