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 ?
For 2019, the max for employees who participate in a 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is $19,000.
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. These plans are popular forms of retirement savings that allow employees to defer the taxation of wages to a future year.
• According to Notice 2018-83, the contribution limit for employees who participate in 401(k), 403(b) and most 457 plans, or the federal government’s Thrift Savings Plan, is increased from $18,500 to $19,000.
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.
According to Internal Revenue (IRS) Notice 2016-32, the contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan remains unchanged at $18,000.
457 Plans," and "Employee Benefits in Mergers & Acquisitions," and he is the author or co-author of over 80 articles on employee benefit issues.
Cohen & Steers (NYSE: CNS) has appointed Charlie Wenzel as senior vice president, head of wealth management defined contribution, as part of the firm's increased focus on the USD4.7 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.
The report forecasts the market for DCIO assets -- investment management mandates awarded within qualified retirement plans such as 401(k), 403(b) and 457 plans -- will constitute just over half (51 percent) of the DC market by 2020, up from 47 percent currently.
* 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