457 Defined Contribution Plan
A 457 Plan can function very similar to a traditional 401(k) plan.
A 457 plan is a type of defined contribution retirement plan available to state and local public organizations, but can also be offered by select nonprofit organizations.
What is a 457 Retirement Plan?
This form of retirement plan works very similar to a traditional 401(k) plan: allowing the employees options to divert part of your salary into the plan where money is automatically deducted from your paycheck before taxes are taken out.