Insurance Broker | Financial Consultant, Lawrence Insurance Consulting, Southern New Jersey
Section 457 plans are nonqualified deferred compensation plans available only to state and local government employers, and nongovernment organizations exempt from tax under IRC Section 501. Generally 457 plans are utilized for two reasons-
1. As deferred compensation plans that allow participants to reduce their taxable salary in a manner similar to that of 401(k) plans. 401(k) plans generally are not available to state and local government organizations.
2. As supplemental benefit plans that provide executives with supplemental retirement income.
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1. As deferred compensation plans that allow participants to reduce their taxable salary in a manner similar to that of 401(k) plans. 401(k) plans generally are not available to state and local government organizations.
2. As supplemental benefit plans that provide executives with supplemental retirement income.