457 Plan


DEFINITION of '457 Plan'

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.


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.

  1. Eligible Automatic Contribution ...

    Also known as EACAs, these were created as part of the Pension ...
  2. Qualified Automatic Contribution ...

    Also known as QACAs, these were established under the Pension ...
  3. Elective-Deferral Contribution

    A contribution arrangement of an employer-sponsored retirement ...
  4. Qualified Retirement Plan

    A plan that meets requirements of the Internal Revenue Code and ...
  5. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  6. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt ...
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