Section 457 B

Saving to your 457 b plan can help you maintain your desired standard of living.

Section 457 b. The money grows tax free waiting for you to decide what to do with it when you. Just like a 401 k or 403 b plan a 457 plan allows you to invest a portion of your salary on a pretax basis. Irc section 457 b deferred compensation plan basic plan document 457b copyright 2002 2020 all rights reserved.

Filed on september 17th 2020. The employer provides the plan and the employee defers compensation into it on a pre tax or after tax roth basis. With 457 b plans you contribute pre tax dollars which won t be taxed until you withdraw the money.

A 457 b plan is an employer sponsored tax favored retirement savings account. The 457 plan is a type of nonqualified tax advantaged deferred compensation retirement plan that is available for governmental and certain nongovernmental employers in the united states. 657 in general subject to subsections d and e the amounts collected on behalf of a family as support by a state pursuant to a plan approved under this part shall be distributed as follows.

Compilation of social security laws 457. Distribution of collected support. 457 b plan contributions as of 2020 employees can contribute up to 19 500 per year a slight increase on the 2019 limit of 19 000.

A 457 b retirement plan is much like a 401 k or 403 b plan. The 457 b deferred compensation plan is one piece of your retirement program designed to supplement your retirement savings. 457 b eligible deferred compensation plan defined for purposes of this section the term eligible deferred compensation plan means a plan established and maintained by an eligible employer i r c.

In some cases workers are able to contribute even more.