My employer is offering an Early Retirement Incentive (ERI) program in which I may elect a lump-sum payment, a monthly stipend for a specified number of years, or a combination of these two. If I decide to participate, will I have the option to defer any portion of these payments into my 403(b) or 457(b) accounts?
No, ERI stipends are not eligible for 403(b) or 457(b) plan deferrals. If the agreement you are contemplating signing includes an option to contribute portions of the ERI stipend into a 403(b) or 457(b) account, please contact CCC and we will discuss this issue with your employer.
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Should I take a hardship withdrawal to meet needs resulting from the depressed economy?
If you do so, you need to be aware of the tax implications. Click here to read important warnings in a Wall Street Journal Digital Network article.
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Does CCC provide financial or investment advice?
No. CCC provides only compliance monitoring and plan administration services to its client Employers.
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Where should I go for financial or investment advice?
A number of resources are available on the web, but many people have neither the time nor the inclination to investigate these resources. Whatever your preference, check out useful links and the left-hand column of the vendors page of your Employer's section of this website, both for doing your own research and for information on financial planners and investment advisors located in your area.
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Does PERS affect my 403(b) or 457(b) contributions?
The general answer is no. You are allowed to contribute right up to your elective deferral limit into either or both of the 403(b) and 457(b) plans, irrespective of employee and employer PERS contributions.
The only situations in which PERS contributions impact your ability to contribute to 403(b) and/or 457(b) plans is when your gross salary is fairly low (about $13,000 per year for a single plan or $26,000 per year for both plans during 2004). Since contributions are limited to 100% of compensation, if employee PERS contributions are pre-tax salary deductions, they reduce your compensation. Consequently, they reduce the amount you can contribute to the 403(b) and/or 457(b) plans.
Important Observation: If you are employed by a CCC client Employer, you may request a free calculation of your maximum allowable contribution (MAC). Contact us to request your MAC calculation.
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What is the process to add a preferred provider to my employer's list of vendors?
The process for adding a "preferred provider" (our terminology is "Vendor with an Active Payroll Slot") may be found in your employer's 457(b) Plan Document.
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Can I move 457(b) funds to another Vendor? to an IRA?
457(b) funds cannot be exchanged with or moved to a new vendor's 457(b) account.
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