By Matthew Makowski A 457 plan is a lesser-known retirement plan similar to a 401k. But these types of plans come with some added benefits.
First off, it’s worth noting that there are two versions. The 457(b) plan is the more common of the two. The other is the 457(f) plan. Both are IRS-sanctioned, tax-deferred plans. Those who partake are allowed to contribute up to the elective deferral limit of $19,500. But in some cases, workers are allowed to contribute even more. And because these are tax-advantaged plans, that means the interest and earnings aren’t taxed until the funds are withdrawn.
The big difference between …read more
