You know how important it is to really listen to your employees, students or colleagues so you can help them achieve their goals. At Edward Jones, we follow the same philosophy. That's why we will spend as much time as you need to understand your retirement planning options, including 457 plans.
A 457 plan is a deferred compensation plan that lets you save for retirement with pretax salary deferrals while reducing your taxable income.
There are three groups of individuals who are eligible for 457 plans:
Keep in mind that 457 plans have contribution limits that are separate from those of other retirement plans. This means that if you’re eligible to participate in a 457 plan and another deferral program, such as a 403(b) or 401(k) plan, you can contribute the maximum amount to both plans. For example, in 2016, a public school employee can defer $18,000 into a 403(b) plan and another $18,000 into a 457(b) plan.
Your financial advisor can provide you with information about a 457 plan and what options make sense for you.