The Lehigh University 457(b) Deferred Compensation Plan is a voluntary retirement savings plan for faculty and professional staff members whose base salary is equal to or exceeds $200,000 (including academic CAPs) during a calendar year. The plan is intended as a nonqualified, deferred compensation plan to provide supplemental retirement savings. There is no employer matching incentive or employer contribution to this plan.
Contributions to the 457(b) Plan are made on a pre-tax basis, which allows you to build your retirement savings while reducing your current taxable income. There is no post-tax (Roth) option or employer contributions.
The plan offers a wide range of investment options available through TIAA. Once enrolled, you can view and manage your investments through the TIAA website, along with beneficiary assignment.
Unlike the 403(b) Plan, which is a qualified plan, the 457(b) Plan is a nonqualified deferred compensation arrangement. This means that the assets that are held pursuant to the 457(b) Plan will be subject to the claims of all unsecured creditors of the University if the University becomes bankrupt or insolvent.
About the Plan
Per IRS rules, this benefit may be provided to individuals who meet certain income criteria. There is no employer matching incentive or employer contribution to this plan.
Lehigh University Associate and Full Faculty, Administrators and Exempt Staff Grade 14 and 15 whose base salary equals or exceeds $200,000 during a calendar year are eligible to participate in the plan.
You may begin participating in the plan to make employee pre-tax contributions as soon as practicable after your eligibility date. You may begin this participation by completing an online salary deferral to make pre-tax deductions on TIAA's website. NOTE: Salary Deferral Elections made to the 457(b) plan will be effective on the first of the month following your online election. For example: Contributions entered in the system on 10/15 will become effective as of November 1.
To begin your 457(b) contributions:
- Log into your TIAA account here or open your app
- Click on Account (upper left corner), under Quick Links, click on Manage Contributions
- This opens a page that shows your 403(b) accounts, click Manage Contributions
- Your Contributions Summary Page opens, click Manage Contributions (yellow button)
- Your 403(b) contributions page opens first; scroll to bottom and click next
- You will then see the 457(b) Plan. In your 457(b) contributions page you will indicate when to start contributions and whether to contribute a flat dollar or percentage amount. Enter an amount or percent and click next
- Review your contributions, scroll to bottom, accept terms and conditions and click the yellow CONFIRM button
- You will receive an email confirmation of this change from TIAA, if you do not receive a confirmation email please reach out to TIAA at 1-800-842-2242
The maximum contribution limit is established by the IRS each year. In 2025, eligible participants can contribute up to $23,500. Additional "special catch-up" contributions may be made in the three years before reaching the age of 65. Review the section below about the “special 457(b) catch-up contribution” for more information.
This contribution limit is for the 457(b) Plan and is separate from the 403(b) Plan. Contributions made to the 403(b) Plan do not count towards the 457(b) limit.
Plan participants can make additional contributions to help them “catch-up” for the years they did not contribute the maximum amount permitted under the Internal Revenue Code IRC limits. A participant must make these catch-up contributions during the three consecutive years before the calendar year in which they reach the Plan’s normal retirement age of sixty-five (65). These special catch-up contributions cannot be made in the year in which someone reaches age sixty-five.
You can change your contribution by logging into your TIAA account. Any change made to your 457(b) contribution will become effective as of the 1st of the month following the change.
To make changes to your 457(b) contribution:
- Log into your TIAA account here or open your app
- Click on Account (upper left corner), under Quick Links, click on Manage Contributions
- This opens a page that shows your 403(b) accounts, click Manage Contributions
- Your Contributions Summary Page opens, click Manage Contributions (yellow button)
- Your 403(b) contributions page opens first; scroll to bottom and click next
- You will then see the 457(b) Plan. In your 457(b) contributions page you will indicate when to start contributions and whether to contribute a flat dollar or percentage amount. Enter an amount or percent and click next
- Review your contributions, scroll to bottom, accept terms and conditions and click the yellow CONFIRM button
- You will receive an email confirmation of this change from TIAA, if you do not receive a confirmation email please reach out to TIAA at 1-800-842-2242
Vanguard Target Date funds are the default investment option for the Plan. View a list of these plans here. If specific investments are not selected on enrollment, contributions will be directed to the Vanguard Target Date fund that most closely corresponds to the year the participant turns age 65. Participants may modify their investment choices at any time.
Participants cannot withdraw or otherwise take distributions from their 457(b) plan account while employed by the University. Loans are not available through the 457(b) plan.
Once a participant leaves the University, they can choose to receive the value of their plan account in a single sum, in installments, as a lifetime annuity, or postpone distribution to a later date.
Participants must make their withdrawal election within 60 days of separation from University employment. If they do not make an election within 60 days, their 457(b) Plan account will be automatically paid as a single lump-sum payment.
Participants are 100% fully vested in their contributions to the plan from their first contribution. There are no employer contributions to the 457(b) plan.