457

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457

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.

457.

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 ?
Tenders are invited for provide the school district with financial tpa services for 403(b) and 457 plans, on an as needed basis, district wide.
eliminates the special catch-up rules for 403(b) and governmental 457 plans and coordinating limits between 403(b) and 401(k) plans and governmental 457 plans;
2 November 2017 - US-based asset management financial advice and consultancy services provider PFM has inked an agreement to acquire the assets of Fiduciary Capital Management that will allow PFM's asset management business to expand its services to include "stable value" investments to qualified retirement plans such as a 401(k) and 457 plans, the firm said.
1) 401(k), 403(b), and most 457 plans -- Contributions to these plans are generally made on a pre-tax basis, but some plans have an after-tax option (Roth) as well.
7 trillion defined contribution investment-only (DCIO) marketplace, where it provides investment management services within qualified retirement plans, including 401(k), 403(b) and 457 plans, the company said.
But our DC plans were mostly mutual fund lineups and not aligned between the 401(k) and 457 plans.
In addition to 401(k) plans, at the end of the second quarter, $560 billion was held in other private-sector DC plans, $928 billion in 403(b) plans, $258 billion in 457 plans, and $409 billion in the Federal Employees Retirement System's Thrift Savings Plan (TSP).
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), 457 plans and the federal government's thrift savings plan increased from
The IRS guidance, Notice 2014-54, noted that these rules also apply to disbursements from 403(b) or 457 plans.
Public Retirement Planners, LLC is an independent financial services company that helps government employees and retirees with their 457 plans, financial planning and investment management needs.
Mutual Fund Retirement Assets by Type of Account and Fund: Q4 2013 Equity Total Domestic Foreign Hybrid (1) Retirement accounts $3,761 $2,885 $876 $1,437 IRAs 1,637 1,244 393 627 DC plans 2,124 1,641 483 809 401(k) plans 1,584 1,197 387 670 403(b) plans 309 271 38 76 457 plans 69 54 15 16 Other DC plans (2) 162 119 43 47 VA mutual funds (outside 778 601 177 140 of retirement accounts) (3) Total 4,539 3,486 1,054 1,577 Bond Money Total marketw Retirement accounts $893 $379 $6,470 IRAs 465 230 2,959 DC plans 427 149 3,511 401(k) plans 307 98 2,659 403(b) plans 36 21 442 457 plans 15 1 101 Other DC plans (2) 70 29 308 VA mutual funds (outside 300 24 1,241 of retirement accounts) (3) Total 1,192 403 7,711 (1) Hybrid funds invest in a mix of equities and fixed-income securities.
This Q&A reference for tax-exempt organizations, state and local governments, and their lawyers and other legal and business service providers covers the latest regulations on all aspects of eligible and ineligible 457 plans (deferred compensation plans).