As a Maryland Higher Education Employee, you have the opportunity to save additional funds on a pretax basis for retirement. When combined with your pension plan and Social Security, these plans can help put you on a path to financial independence.

In 2004, you could contribute $14,000, and in 2005 this amount increased to $15,000. Starting in 2007 these limits are indexed in $500 inflation-based increments. In addition, if you were age 50 or older, you couldcontribute up to $18,000 in 2005, and $20,000 in 2006. Starting in 2007 the amounts are indexed in $500 inflation-adjusted increments.

The 457(b) plan offers extra benefits, including no 10% IRS early-withdrawal penalty. But withdrawals before termination are not permitted at age 70 1/2. Plus, as an employee of one of Maryland's Public Higher Education Institutions, you can invest in both a 403(b) and government 457(b) simultaneously. You can also use all of the same investment choices as the ORP, along with two more options, and loans are available.