401(k), 403(b) and 457 Plans

These defined contribution plans allow employees to save for retirement on a tax-deferred basis. 401(k) plans are found in the private sector and the public sector in some states. 403(b) plans are for employees of public educational institutions and certain non-profit tax-exempt organization. 457 plans (also known as deferred compensation plans) are for governmental employees and non-church-controlled tax-exempt organizations.

Definition courtesy of the Texas Pension Review Board

Share This Post

Recent Articles

Privacy Policy | © 2019 Pension360 and © 2014 Policy Data Institute | Site Admin · Entries RSS ·