Review:
457(b) Plan
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
A 457(b) plan is a type of retirement savings account available to employees of certain non-profit organizations, as well as state and local governments.
Key Features
- Tax-deferred contributions
- Ability to make catch-up contributions
- No early withdrawal penalty after age 59.5
Pros
- Allows for tax-deferred savings for retirement
- Potential for employer matching contributions
- Flexibility in contribution amounts
Cons
- Limited to certain types of employers
- Strict eligibility requirements
- Penalties for early withdrawals before age 59.5