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Plan Types 457(b) Deferred Compensation Plan (DCP) This information is general in nature and may be subject to change. Neither AIG VALIC nor any of its agents give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, you should consult your attorney or tax advisor. Type of employer? State, county or municipal governments and their agencies, or a private tax-exempt organization. ERISA-covered? Yes, if employer is a tax-exempt (non-governmental) organization. If tax-exempt employer limits participation to "top hat" group, then exempt from most ERISA requirements, e.g. funding. Nondiscrimination rules? No. Trustee required? Yes, unless the plan is funded with a qualifying annuity contract. Plan-to-plan transfers? No, but plan assets for governmental plans must be held in trust, an annuity contract or a custodial account for the exclusive benefit of plan participants and their beneficiaries. Rollovers? Governmental employer plans only; Assets may be rolled over to another governmental 457(b) plan, IRA, 401(a)/(k), 401(k) or 403(b) plan. Unless rolled over to another governmental 457(b) plan, distributions from the plan receiving the rollover will be subject to applicable 10% penalty for pre 59½ distributions. Permitted investments? A broad range of investment alternatives, including annuity contracts and mutual funds. Hardship withdrawals? Only in the event of an unforeseeable emergency. Loan provisions? Yes (governmental employer plans only). Eligibility requirements? Governmental employer — has complete discretion, subject to state law. Tax-exempt employer — must limit participation to "top hat" group. Maximum employer contribution? The lesser of 100% of includible compensation [gross salary less 414(h) pick-up and non-elective employee contributions] or $15,500 in 2007, less any employee contributions. Maximum employee contribution? The lesser of 100% of includible compensation [gross salary less 414(h) pick-up and non-elective employee contributions] or $15,500 in 2007, less any employee contributions. Age-based catch-up provisions? Individuals age 50 or older may contribute an additional $5,000 in 2007. May not be used in addition to elective deferral catch-up. Elective deferral catch-up? Yes, up to twice the dollor limit in effect for the year. Must be within last three taxable years ending prior to year of Normal Retirement Age under the plan, and have underutilized contributions in prior years. May not be used in addition to age-based catch-up. Elective deferral changes? Can stop elective deferrals at any time; other changes as often as plan permits. Funds ownership? Governmental employer — assets are held in an annuity contract, custodial account or trust for the exclusive benefit of plan participants and their beneficiaries. Tax-exempt employer — funds remain part of employer's general assets and are subject to the claims of the employer's general creditors. Distributions to employee? Upon separation from service, death, attainment of age 70½, or an unforeseeable emergency. Distribution postponement? Tax-exempt employer plans only; Upon separation, participant can make irrevocable election of an alternative commencement date to begin distributions. If employer's plan allows, participant can change — one time — the decision made after retirement of when to begin receiving distributions. #40199