A 457(b) plan is a Tax-Deferred Retirement Plan available to employees of state and local governmental agencies, including public school employees. They are similar to 401(k) plans because they allow you to place a percentage of your salary into an employer-sponsored plan that helps you save for retirement. You will not have to pay taxes on what you contribute or earnings made until you withdraw the money.
- Investment options: fixed annuities, variable annuities, or mutual funds
- Flexibility: start, stop, and adjust your contributions as allowed by your employer’s plan
- Receive periodic account statements
- No 10% federal penalty on interest or earnings for early withdrawal
- No current federal income taxes on the money you put into the plan until it is time to take withdrawals
- In 2023, you can contribute 100 percent of your includible compensation up to $22,500, whichever is less. If
you are age 50 or older, you can contribute up to an additional $7,500 for a total of $30,000. All investing
involves risk. Past performance is not a guarantee of future returns.
All investing involves risk. Past performance is not a guarantee of future returns.