457 Deferred Compensation Plan
The purpose of this Plan is to provide deferred compensation for a select group of Howard University highly compensated employees. The Plan is intended to be a "top hat" plan within the meaning of ERISA §§ 201(2), 301(a)(3), and 401(a)(l) and an eligible deferred compensation plan within the meaning of Code § 457(b). The Plan shall at all times be an unfunded plan for purposes of Title I under ERISA. This Plan Document is adopted by Howard University as of April, 2011
An Employee will become eligible to participate in the Plan if they are a full time University Employee earning $150,000 or more in compensation in a Plan Year, and is scheduled to provide maximum tax deferred contributions to the University's Savings Plan under rules that apply to Internal Revenue Code Section 403(b).
- Employer contributions are not available in the Plan.
- Employee elective deferral contributions for the 2019 tax year is $19,000
- Employee Catch-up (414(v)) contributions are not permitted on this Plan
- Employee “Special” Catch-up contributions are permitted using the rules in Treasury Regulation§ 1.457-4(c)(3), if a Participant has not deferred the maximum amount allowable under the Plan in previous years in which he or she was eligible to participate in the Plan, the participant may elect to make catch-up deferrals in any one or each of the Participant's last three taxable years ending prior to but not including the Participant's attainment of Normal Retirement Age
All contributions are immediately vested, with Participant rights of ownership, when made.
Forms of Distribution:
The Participant may elect to receive the Participant's benefits under the Plan in the form ofdistribution to include a lump sum distribution, installment payments, and such other forms as are then available under the Plan through the Investment Company and as then determined by the Plan Administrator. If a Participant fails to elect a particular form of distribution within the sixth (60) day period, then the default form will be a lump sum paid as soon as administratively practicable.