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Like its better-known sibling — the 401(k) — a 457(b) retirement plan is a tax-advantaged way to save for retirement. But the 457(b) is designed especially for employees of state and local ...
The 457 plan is a type of nonqualified, [1] [2] tax advantaged deferred-compensation retirement plan that is available for governmental and certain nongovernmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pre tax or after-tax (Roth) basis.
Employees must pay taxes on deferred compensation at the time such compensation is eligible to be received (not just when it is drawn out). [2] Deferred compensation is also sometimes referred to as deferred comp, qualified deferred compensation, DC, non-qualified deferred comp, NQDC, or golden handcuffs.
A non-qualified deferred compensation plan or agreement simply defers the payment of a portion of the employee's compensation to a future date. The amounts are held back (deferred) while the employee is working for the company, and are paid out to the employee when he or she separates from service, becomes disabled, dies, etc.
A 457(b) plan (also referred to as a 457 plan) is a retirement savings vehicle available to some state and local government employees. It works like a 401(k) in that employees can divert a portion ...
Key employees are generally the top 50 employees with pay above $150,000. [5] The rules restricting the timing of elections as to the time or form of payment under a nonqualified deferred compensation plan fall into two categories: [6] initial deferral elections; subsequent deferral elections
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Once passed, the plan could be advanced to the full County Board. In 2000, the head of the County's Human Resources department testified that, according to the Milwaukee's only daily newspaper, the "backdrop benefit cost estimate was done. County pension consultants from Mercer Inc. do not speak up, though say later they knew the remark was ...