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A retirement investment plan for employees of state and municipal governments in which a contributor defers taxation on contributions until after withdrawal. A worker places a portion of his/her pre-tax income into a 457 account and allows it to be invested. Taxation is deferred until withdrawal from the account, generally after retirement. 457s are employee benefits, and workers must have a sponsoring employer, such as a public school or a church, in order to take advantage of one. It is equivalent to a 401(k) and a 403(b); the main structural difference is that 457s may allow for higher catch-up contributions.


These tax-deferred retirement savings plans are available to state and municipal employees.

Like 401(k) and 403(b) plans, the money you contribute and any earnings that accumulate in your name are not taxed until you withdraw the money, usually after retirement. The contribution levels are also the same, though 457s may allow larger catch-up contributions.

You also have the right to roll your plan assets over into another employer's plan, including a 401(k) or 403(b), or an individual retirement account (IRA) when you leave your job.

References in periodicals archive ?
He also explained that Blocks 455 & 457 are in need of another entrance, as there is presently one entrance from Shaikh Isa bin Salman Highway.
But I read an article in The Lamp regarding the issue of 457 visa holder nurses vs.
More than seven years in the making, the issue first came to light in 2004 when the IRS issued a private letter ruling that stated that a FCU was not an eligible employer under Section 457 of the IRC because it was a federal government instrumentality.
19 /PRNewswire/ -- Four out of five public sector workers participating in 457 plans don't believe their defined benefit pensions will be enough to maintain a desired standard of living when they retire, according to the results of a survey conducted for ICMA-RC.
The business long-stay or subclass 457 visa is Australia's main temporary visa for employer-sponsored skilled persons.
Current law allows deferred compensation to be offered to key executives exclusively within Section 457 of the Internal Revenue Code.
Internal Revenue Code Section 457, which governs most of the nonqualified deferred compensation arrangements of tax-exempt organizations, describes two categories of plans:
457 plan maximum contributions are now equal to federal limits.
Similar increases apply to 403(b) and 457 plans as well as SAR-SEPs.
The ACTU has called for tighter regulation of 457 visas in Australia in light of the "staggering numbers of nurse graduates that are shunned by employers".
More than seven years after working to settle questions about 457 plans at federal credit unions, the Internal Revenue Service recently announced that it plans to issue proposed regulations to clarify how they are used.
3 /PRNewswire/ -- ICMA-RC and the National Fraternal Order of Police (NFOP) are launching the Blue Line 457 Plan at the FOP National Conference in New Orleans, LA.