A 457 plan is a type of nonqualified tax-advantaged deferred compensation retirement plan available for governmental and certain nongovernmental employers in the United States. Like a 401(k), the employer provides the plan, and the employee defers compensation into it on a pre-tax basis.
The key difference is that, unlike a 401(k) plan, there is no 10% penalty for withdrawal before the age of 59 1/2 (although the withdrawal is subject to ordinary income taxation). Another difference is that a 457 plan participant cannot make designated Roth contributions as participants in appropriately amended 401(k) and 403(b) plans can. Additionally, 457 plans (both governmental and nongovernmental) can allow independent contractors to participate in the plan where 401(k) and 403(b) plans cannot.
May 10, 2013
Deadline to Preserve Tax-Exempt Status Nears
Deadline to Preserve Tax-Exempt Status Nears
May 10, 2013 (PLANSPONSOR.com) – Many tax-exempt organizations that are required by law to file annual reports with the Internal Revenue Service (IRS) must do so by May 15 or risk having their exemptions revoked.
Kevin McGuinness
editors@plansponsor.com
May 08, 2013
IRAs, DC Plans Top Retirement Savings Vehicles
IRAs, DC Plans Top Retirement Savings Vehicles
May 8, 2013 (PLANSPONSOR.com) – Assets in employer-sponsored retirement plans, IRAs, and annuities totaled $19.5 trillion at year-end 2012, up 8.6% from year-end 2011.
Rebecca Moore
editors@plansponsor.com
According to the Investment Company Ins
April 24, 2013
When Governmental Plans Need Private Letter Rulings
When Governmental Plans Need Private Letter Rulings
April 24, 2013 (PLANSPONSOR.com) - Governmental plan sponsors who apply for an Internal Revenue Service (IRS) determination letter cannot rely on a favorable letter for certain features.
PLANSPONSOR staff
editors@plansponsor.com
Those inclu
April 01, 2013
Survey Finds Governmental 457 Plan Growth
Survey Finds Governmental 457 Plan Growth
April 1, 2013 (PLANSPONSOR.com) – Assets in governmental section 457 retirement plans increased between 2011 and 2012, the National Association of Government Defined Contribution Administrators (NAGDCA) finds.
Kevin McGuinness
editors@plansponsor.com
To