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Can Public Employees save for retirement in a 457(b) plan?

Many public employees have the option of saving for retirement in a 457 (b) plan. 457 (b)s are most common with state and local government employees. Here are some specific examples: These employees can opt to have money taken out of each paycheck and stashed in a 457 (b) retirement account.

What is a 457(b) 401(k)?

A 457 (b) is a type of tax-advantaged retirement plan for state and local government employees, as well as employees of certain non-profit organizations. While the 457 (b) shares a few features with the more familiar 401 (k) plan, it also has some unusual features. Here’s what you need to know.

What is a 457 (f) retirement plan?

The 457 (f): This plan is offered only to highly compensated executives in tax-exempt organizations. It is a supplement to the 457 (b) and it is, essentially, a deferred salary plan. The 457 plan is an IRS-sanctioned, tax-advantaged employee retirement plan.

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