What is a 457 plan?

457 plans are tax-advantaged retirement plans similar to 401(k)s, offered by state and local public employers and certain tax-exempt employers.

457 plans are retirement savings plans with tax benefits and are offered by state and local public employers and certain nonprofit (also known as tax-exempt) employers. The key here is to remember that private for-profit employers do not offer these plans.

Why are these plans called 457 plans?

457 retirement plans are based on section 457(b) of the Internal Revenue Code (IRC) – hence the name – which was created with the passage of the Revenue Act on November 6, 1978, and originally applied only to state and local government employers. The Tax Reform Act of 1986 extended IRC 457 to apply to tax-exempt entities.

How can we help?

Our financial advisors will work closely with you to evaluate all the retirement options available to you. We invite you to meet with an Edward Jones financial advisor and get started today.

Important information:

This information is for educational purposes only. Edward Jones, its employees and financial advisors cannot provide tax or legal advice.