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457 Plans

457 plans cover retirement benefits for state and local government employees and some non-profit businesses. 457 plans are non-qualified, meaning they fall outside the guidelines, rules, and regulations of the Employee Retirement Income Security Act of 1974(ERISA). Plan administrators can choose to allow employees to contribute either pre-tax or after-tax dollars to their 457 plan, similar to a 401(k) plan. A 457 plan hasdifferent contribution limits and early withdrawal provisions than a 401k, and offers a unique “Double Limit Catch-Up” provision that allows almost-retired participants to make up for any eligible contribution years they missed. Wondering how a 457 plan might fit into your government retirement plan benefits package? Explore additional 457 plan details by reading our 457 plan articles on the Watkins Ross blog and connect with us here to get a customized look into how a 457 plan can impact your benefit structure.