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A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee's income without being taxed and are only taxed upon withdrawal, which is typically at retirement, after the funds have had several years to grow.
CalPERS 457 Plan The plan is a voluntary savings program that allows employees to defer any amount, subject to annual limits, from their paycheck on a pretax basis. In addition, employee contributions and their earnings, if any, can benefit from the power of tax-deferred compounding.
The State of Connecticut Deferred Compensation 457 Plan (457 Plan) is a voluntary retirement program that is available to any common law employee or any individual performing services for the State either by appointment or election (including members of the General Assembly).
What is the CT Retirement Security Program? MyCTSavings is a state-sponsored retirement savings program that provides a convenient way for employers to help their employees reach their financial goals. There's minimal administrative work necessary and the plan easily integrates with existing payroll systems.
The 403(b) is a tax-advantaged plan. Employees may choose how much to contribute and whether to contribute on a pre-tax basis, on an after-tax basis (Roth), or with a combination of the two methods.
Most government entities offer employees a pension, which acts like an employer contribution. The 457 is seen as a supplemental savings plan for employees, enabling them to save more if they want.