What Is A 457 Retirement Plan? And How Does It Works?

November 24, 2021 1 Min read Views 193 BUSINESS

There are some nonprofit organizations, state governments, and local governments offering non-qualified, tax-advantaged, deferred compensation retirement plans under the 457 plan. Participants are eligible to defer their salaries through salary deferral contributions, allowing pre-tax money to compound without being taxed until withdrawn. In a 457 retirement plan, employers offer a tax-advantaged retirement plan. With this type of plan, employees contribute pre-tax dollars each month, and the payments are not taxed until they withdraw the funds, usually for retirement.

Tags: 457 retirement plan, qualified retirement plan, retirement, retirement planning

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