Review:
457(b) Deferred Compensation Plan
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
A 457(b) deferred compensation plan is a type of retirement savings account available to certain government and non-profit employees.
Key Features
- Contributions are made on a pre-tax basis
- Withdrawals are generally allowed penalty-free upon separation from service
- Higher annual contribution limits compared to traditional retirement accounts
Pros
- Tax-deferred growth potential
- Ability to supplement other retirement savings accounts
- Flexibility in investment options
Cons
- Limited availability to certain eligible employees
- Potential penalties for early withdrawals before age 59.5