Benefits Glossary

• 4

• 401(k) PlanA qualified employer-sponsored retirement plan that allows eligible employees of a company to save and invest for their retirement on a tax-deferred basis. An employer may also choose to make contributions to the plan, but this is optional. Employer contributions may be Matching Contributions, Non-Elective Contributions, or both. After-tax or Roth 401(k) employee contributions may also be permitted.
• 403(b) PlanA tax-sheltered annuity (TSA) retirement savings plan available to employees of certain public education organizations, non-profit employers and cooperative hospital service organizations. It is very similar to a 401(k) Plan but is exempt from certain administrative processes applicable to a 401(k) Plan, such as Discrimination Testing, and thus has lower administrative costs.
• 457 PlanA type of nonqualified tax-advantaged deferred compensation retirement plan that is available for certain governmental and non-governmental tax-exempt entities. The employer provides the plan and the employee defers compensation into it on a pre-tax or after-tax basis.