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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.
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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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
State and local governments can now weigh in on a proposal aimed at requiring them to apply pension accounting rules to some retirement plans offered by tax-exempt organizations that provide more flexibility than traditional benefit plans, including Internal Revenue Code (IRC) section 457 plans.
In a COA report of Pagcor for 2018, the expected target of 457 classrooms worth P714.496 million were not completed within the deadline.
Summary: Revenue from the tourism sector, at the end of March 2018, increased by 23% compared to the same period of 2017, reaching 457 MTD.
Summary: The 457 visa programme, used by over 95,000 foreign workers, majority of them Indians, was replaced on March 18
Pakistan has handed over the list of 457 Indian prisoners to High Commission of India in Islamabad and in the reciprocal way Indian government also gave the list of Pakistani prisoners to Pakistani High Commission in New Delhi.
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.
Unlike private employers, tax-exempt and governmental employers are required to comply with the complex rules of Tax Code Section 457 whenever compensation is payable to employees in arrangements beyond the current tax year, such as for executive deferred compensation and severance arrangements.
Summary paragraph: Roth conversion eligibility; deferring time-off pay to a 457 plan; union-to-nonunion benefits eligibility; ERISA church plan?
The new proposed 457(f) regulations adopt a similar rule for that type of plan, so that the new 457 requirements will not apply in the event of such a short-term deferral.
Many graduate nurses and midwives Australia-wide can't get jobs, while at the same time those on 457 visas are vulnerable to underpayment and exploitation.
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.
* 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