Rice University allows eligible employees to contribute to a 457(b) deferred compensation plan. To be eligible, you must earn at least 140% of the current year's Social Security Wage Base ($168,600 in 2024, and $176,100 in 2025), which equals a base compensation of $237,000 for 2024 and $247,000 in 2025.
The deferral of compensation is made with pre-tax dollars, and the earnings accumulate on a tax-deferred basis. You choose how to invest the funds based on your risk tolerance. Please review and choose your investment options and designate a beneficiary (see below) for your investments. You may select from Rice’s 457 plan's investment choices or use the investment window (see below).
Please review the plan’s Frequently Asked Questions to learn about the unique features of this plan and how it compares to our other retirement plan options.
Enroll in the Plan
To enroll in the 457(b) Deferred Compensation Plan, you will need to visit the NetBenefits website, and if you wish to designate your beneficiary and investment options at the time the account is created, please also do so at your provider website, either TIAA or Fidelity.
Contributions
For the calendar year 2024, you may contribute up to $23,000 (in 2024) in deferred compensation, but we encourage you to maximize your 403(b) contributions prior to contributing to your 457(b) deferred compensation plan. Please review the FAQs for details on the risks of a 457(b) plan contribution. This amount will increase to $23,500 in 2025.
A special catch-up contribution limit allows participants within three years of attaining their normal retirement age to contribute an extra amount if they contributed less than their allowable maximum in earlier years. For these participants, the maximum amount is the lesser of:
- twice the annual limit, or
- the annual limit, plus the total underutilized contributions from prior years.
You can contact a member of the Benefits Team for more information, including the calculation of the normal retirement age.
Please review the 457(b) Deferred Compensation Plan Document for more details about the plan.
Recordkeepers
Rice offers Fidelity Investments or TIAA as the administrator for your 457(b) deferred compensation contributions.
Investment Window
If you are not satisfied with these current selections, or if you are seeking a particular mutual or sector fund, you can also use the Investment Window (or brokerage account). This option will allow you to invest in any mutual fund that is available on that administrator's platform. Keep in mind that Rice will only report fees and expenses for the Vanguard Institutional Target Fund and the funds identified above under each administrator. It is ultimately your responsibility to monitor and choose funds that meet your particular needs and goals. We are providing you with a reasonable list from which to choose, and you also have the ultimate flexibility to choose any available mutual fund on each administrator's platform.