Understanding 457 Plans

457 plans are offered by state and local governments and some non-profits. These are pre-tax accounts; just like 401(k) and 403(b) plans, contributions come from your paycheck before income tax is withheld, but you will pay taxes when you withdraw the money in retirement. But in the meantime, the account is allowed to grow tax-free.…

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Understanding 403(b) plans

This type of employers sponsored retirement plan is offered to education, non-profit organizations, and certain religious organizations. Key aspects of 403(b) plans: These are pre-tax accounts, so you lessen your tax burden in the present but will have to pay taxes when you start using the money in retirement. Employers must allow all employees to…

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