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457 Plans

Deferred compensation plans described in Section 457 of the Federal tax code are available for some state and local governments and non-governmental entities that are afforded tax-exempt status under Section 501.

These plans fall into two groups: (1) eligible plans under Section 457(b), or (2) ineligible plans under Section 457(f). Section 457(b) (eligible) plans allow the employees of sponsoring organizations to defer income taxes on retirement savings into future years. Ineligible plans may create less favorable tax treatment as detailed in Section 457(f) of the Federal tax code.


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