457 Plan

What Does 457 Plan Mean?
A non-qualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.

Investopedia explains 457 Plan
Employees are allowed to defer up to 100% of compensation not exceeding the applicable dollar limit for the year. If the plan does not meet statutory requirements, the assets may be subject to different rules.

Related Terms

401(k) Plan
403(b) Plan
Distribution
Elective Deferral Contribution
Eligible Automatic Contribution Arrangements - EACAs
Qualified Automatic Contribution Arrangements - QACAs
Qualified Retirement Plan
Saver's Tax Credit
More Related Terms

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