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their salaries through salary deferral contributions, allowing pre-tax money to compound without being taxed until withdrawn.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.