What are the catch-up rules that apply to 457(b) plans?”
Charles Filips, Kimberly Boberg, David Levine and David Powell, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:
The answer depends on the type of plan sponsor and is thus often a source of confusion. There are two types of catch-up elections for 457(b) plans: an age-50 catch-up rule, which operates in a fashion similar to the age-50 catch-up under 403(b) and 401(k) plans, and a special three-year catch-up, which is an election to catch-up on prior missed deferrals in the three years prior to normal retirement age that is unique to 457(b) plans. Check out this Ask the Experts column for additional information on the three-year catch-up election.
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