What are 401(k), 403(b) and 457 plans?
These programs refer to the Internal Revenue Code that authorizes them. Deferred compensation plans allow you to save for retirement on a pretax basis. These voluntary plans are available to MUSC employees whereby they can elect deduction(s) from wages to the plan on a pretax basis. These deferred wages are not subject to federal or state income tax withholding at the time of deferral. However, they are included as wages subject to social security, Medicare and federal unemployment taxes. The amount an employee can elect to defer is limited. For more information on 401(k) plans please contact Human Resources at (843) 792-4674.

How much can I defer?
The normal maximum for each program is $14,000*. If you are age 50 or over, you may defer an additional $4,000* . In certain circumstances, you may qualify for special catch-up provisions if you are enrolled in the 457 plan and/or 403(b) program. The catch-up in the 457 plan could allow you to defer an additional $14,000* and in the 403(b) an additional $4,000. Different methods of calculating the limits apply to each program. If you are participating in more than one plan, combined limits do apply. If you would like to know the limit of your program, please contact Human Resources at (843) 792-4674. The minimum deferral in the 401(k) plan is 2 percent of your gross salary per pay period. The minimum contribution under the 457 plan is $25 per month. The 403(b) program has a $15 per month minimum. *For calendar year 2005.

Does my participation affect Social Security or state retirement benefits?
No, you are entitled to exactly the same Social Security and State retirement benefits whether or not you join a deferred compensation program.

Can I change my mind after I join?
You can increase, decrease, start or stop your contributions at any time. Changes will be reflected in the current payroll being processed. To make deferral changes contact Human Resources.

Can I get my money whenever I want?
No, the law allows withdrawals only at certain times, such as retirement, termination of employment, disability, allowable financial hardship or death.