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 ?
The programme known as 457 visa allows business to employ foreign workers for a period up to four years in skilled jobs where there is a shortage of Australian workers.
Reports today that Labor Leader Bill Shorten intends to take a tougher approach to 457 visas for foreign workers are laughable.
In June, the Internal Revenue Service (IRS) proposed long-awaited regulations expected to influence the reporting and taxation of benefits paid under 457 plans-i.
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.
These plans, governed by Internal Revenue Code Section 457, supplement 403(b) qualified plans set up for tax-exempt organizations' rank-and-file workers.
Code section 457 provides rules governing all nonqualified deferred compensation plans of governmental units, governmental agencies, and also non-church controlled tax-exempt organizations.
The business long-stay or subclass 457 visa is Australia's main temporary visa for employer-sponsored skilled persons.
Recent amendments to IRC sections 457 and 3401 changed the characteristic of distributions from a government section 457 deferred compensation plan, from payment as wages to payment as a pension or annuity.
Current law allows deferred compensation to be offered to key executives exclusively within Section 457 of the Internal Revenue Code.
School districts around the country are now offering 457 Deferred Compensation Plans, and many of them are making the NEA Valuebuilder[R], Mutual Fund 457 Plan available to members.