457(b) Plan

Below are the important features about the 457(b) Deferred Compensation Plan of Marymount University (457(b) Plan). This website is intended to be a summary of the plan provisions.  In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail.

View the 457(b) Plan summary brochure 

Eligibility and enrollment

Only a select group of management or highly compensated employees are eligible to participate in the 457(b) Plan. Eligible employees may begin participation in the Plan on the first day of the month coinciding with or following the employee’s satisfaction of the Plan’s eligibility conditions. Please contact your HR Department for any eligibility questions.

To enroll, you must elect a salary contribution amount and investment allocation by logging in to your Plan account. Your enrollment will be effective on the first calendar day of the month following the date your notice of enrollment is received. You will also be prompted to designate your beneficiary(ies) at the time of enrollment.

Employee contributions

You may make contributions to the 457(b) Plan on a before-tax basis through salary deductions each pay period. Your contributions are invested in your choice of any combination of the investment options available through the Plan (see Investment Options for a complete list). 

Under the Plan, the maximum annual contribution amount is set by IRS guidelines on a yearly basis. You may view the current limits here.

Employer contributions

Employer contributions are not permitted in the 457(b) Plan.

Loans

Loans are not permitted in the 457(b) Plan.

Withdrawal Charges

$100 distribution processing fee is applicable per payment, including each installment payment.

Permitted Distributions

  • Initial Election of Distribution - An election to defer payment of your benefit must be made within 60 days after the date of your severance from employment. This 60-day period is your “Election Period”.
  • Second Election of Distribution - A second deferred payment election is permitted after an initial deferral election was received for your 457(b) Plan account. The second election must be made at least 30 days prior to the date on which payments are otherwise scheduled to commence per your first distribution election. This is the last opportunity to defer payment of your account. Please note: You cannot accelerate your commencement date.
  • While still employed by the University, you may not receive a distribution of your benefits except in the case of an unforeseeable emergency.

Distributions from the 457(b) Plan are treated as ordinary income for federal tax purposes. Participants who take a distribution from the 457(b) Plan upon separation from service, regardless of age, are not subject to any early withdrawal penalties.

Payment Options

When you are eligible to receive a distribution under the Plan, you have a variety of payout options. These payout options include:

  • Lump sum distribution
    Take all of your account balance in cash.
  • Semi-annual or annual installments not to exceed 10 years
  • Required minimum distribution
    The latest date to which you can defer payments is the April 1 of the year following the year you reach age 72, or April 1 of the year following the year you retire, whichever is later.

You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.

Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency

Mutual funds under a trust or custodial account agreement are intended to be long-term investments designed for retirement purposes. Account values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax-deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.