RetireBetter specializes in 457 plan administration and recordkeeping. We have the experience and staff to help your organization design a plan that is the right fit for you and your employees.

The 457(b) plan is a specialized retirement savings plan established under U.S. tax regulations. It allows eligible employers to offer their employees an opportunity to save for retirement while benefiting from tax advantages. Similar to other retirement savings plans such as 401(k) or 403(b), the 457(b) plan assists individuals in accumulating sufficient funds to support their lives during retirement.

Eligibility:The 457(b) plan is typically available to employees of government agencies, certain non-profit organizations, and certain government contractors. Each employer may have specific eligibility requirements, so it is crucial to ensure that you meet the necessary criteria.

Contribution Limits: The contribution limits for a 457(b) plan are similar to other retirement savings plans such as 401(k) plans. The maximum amount an individual can contribute annually is $22,500 in 2023, and employees aged 50 years or more can contribute an additional $7,500 in catch-up contributions.

Tax Advantages: One notable advantage of the 457(b) plan is its tax benefits.Participant contributions are generally deducted from pre-tax wages, and withdrawals upon retirement are taxed at applicable rates.

Pre-Tax Salary Deferral: The 457(b) plan allows participants to defer taxation on their income, enabling them to enjoy lower tax rates during retirement.

Flexibility:The 457(b) plan is portable, so if an individual take a new job at a company with a 401(k), the 457(b) asses can be rolled over into the 401(k). It also permits early withdrawals in certain circumstances, such as emergencies.However, it is important to note that early withdrawals may incur penalties and tax obligations in some cases.

Helping governmental entities with their unique retirement needs is a specialty of RetireBetter. Flexible plan design lets our clients compete with other retirement plans in order to retain employees and give them true choice and control over their retirement savings.