457 plans are employer sponsored, non-qualified deferred comp plans for some non-profit or state and local government employees. For those seeking to maximize their retirement savings, a 457 plan can be utilized in addition to 401(k) or 403(b) plans.
- Contributions made through payroll deductions
- Taxes are deferred until distributions are made
- Penalty free distributions after 59 ½ may be permitted
- Distributions must begin by age 70 ½ unless still employed at that company