457 Plans

Deferred Compensation Arrangements

• Generally restricted for employees of a state, its political subdivisions, agencies or instrumentalities and certain tax-exempt organizations
• Employees may voluntarily defer compensation on a pre-tax basis
• In a public employer plan, assets are held in a tax-exsmpt trust for exclusive benefits of the employee
• Withdrawals allowed in event of an unforeseeable emergency, otherwise similar to 403(b)
• Employees bear investment risk
• Assets are held in tax-exempt trust and invested by Trustees in stocks, bonds, and short-term cash management

Questions?