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 ?
My major barrier to engage 457s is the cost of recruitment and determining whether they would fit in, so I have got to go overseas and I have got to interview them, even if I go through an agent who is recruiting people from the Philippines, because I don't know whether that person is going to work (Manager 6, Engineering).
As a result, smaller resource-sector firms are recruiting skilled workers on 457 visas to secure their business stability and growth, despite the complexity, costs, and risks involved.
Plans referred to as 457s appear in the spotlight less often than other defined contribution (DC) plan types.
457 plans are most commonly associated with governments.
The gazetted minimum salary for 457s is reviewed annually.
* Do not prohibit the displacement of Australian staff and their replacement by 457 visa holders (either before or after the employer engages 457s), or local staff being required to train their 457 visa-holder replacements.
There are two classes within this program, the business short-stay (456) visa and the business long-stay (457) visa.
The rationale for the expansion of the 457 visa is to faciltate relatively rapid deployment of overseas workers into Australian businesses where labour shortages exist.
Among other drawbacks, Section 457 participants are constrained by an Internal Revenue Code contribution limit of $7,500 a year--a ceiling which advocates have been unable to convince Congress to raise.
While [sections] 403(b) and [sections] 457 plans appear to be growing rapidly, public funds seem to be installing them only as supplemental saving vehicles--not as a full-fledged second leg of the employee's retirement plan.
Under these conditions, resources firms actively sourced overseas skilled labour on temporary 457 visas.
Resource firms had two mechanisms to meet their immediate skills shortages: restrict firm growth and only take on work that their current staff could handle, or look overseas and source workers on temporary 457 visas.