For most Americans, pension and Social Security benefits will not provide enough retirement income. The 457 deferred compensation plan makes investing easy and can help you create a more financially secure future for you and your family.
What is a 457 plan?
A 457 deferred compensation plan is a retirement plan that allows public employees, like you, to set aside money for retirement from every paycheck. Employees may defer compensation into the plan on a before-tax basis or after-tax (ROTH) basis.
Deferred compensation plan benefits include:
Bridging the gap between your pension and Social Security benefits
A variety of investment options provide opportunities to grow your savings
Supplemental income in retirement
Participation is optional and you can change your contributions at any time
What is an IRA?
An individual retirement account (IRA) allows you to save money for retirement in a tax-advantaged way. You take before-tax or after-tax dollars and deposit them into an IRA account. You can then invest that money in stocks, bonds, exchange-traded funds or other assets. Contributions to Roth IRAs are not tax-deductible, but withdrawals from Roth IRAs are tax-free and there are no taxes on investment gains. Contributions to traditional IRAs are often tax-deductible. However, withdrawals from traditional IRAs in retirement are taxable as ordinary income.