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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 ?
The platform's capabilities support end-to-end recordkeeping for 401(k), 403b and 457 plans across all market segments.
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
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).
With the exception of 457 Plans, the earnings on these plans are taxed and cannot be rolled over into an IRA.
The maximum contribution to 401(k), 403(b), and 457 plans has increased $500 for 2007 to $15,500.
Although traditional IRAs and Roth IRAs are granted limited protection under BAPCPA (generally not to exceed $1,000,000), qualified plans and certain other retirement arrangements such as 403(b) arrangements and 457 plans are granted unlimited protection under the act.
Funded non-ERISA (Employee Retirement Income Security Act) pension plans that are tax-exempt under the Internal Revenue Code such as public-sector retirement programs, Section 457 plans, [section]403(b) arrangements--as well as individual retirement accounts (IRAs)--are now protected from creditors in bankruptcy.
Take advantage of all employer-sponsored plans; 401(k), simple IRA or 457 plans are excellent ways to save, Ormond says, especially if an employer offers matching contributions.
Great-West is a leader ha providing 403(b)7 and 457 plans to large jurisdictions that are accustomed to an "unbundled environment," Healy said, meaning that each often picks separate providers for recordkeeping, investment options and investment advice.