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The 457(b) retirement plan offers many advantages to government workers, including tax-deferred growth of their savings, but these plans do come with some drawbacks. ... Withdrawals from 457(b) plans.
By contrast, Non-Qualified Deferred Compensation (NQDC) plans are ones that don’t meet the requirements outlined in the ERISA and have no contribution limits and more flexible withdrawal rules.
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.
How you make retirement withdrawals will affect your tax brackets. This can be a fairly complicated issue. Depending on which plans you have, your retirement withdrawals might be considered ...
Deferred compensation is an arrangement in which a portion of an employee's wage is paid out at a later date after which it was earned. Examples of deferred compensation include pensions, retirement plans, and employee stock options.
Section 409A makes a distinction between deferred compensation plans and deferral of compensation. The term "plan" includes any agreement, method, program, or other arrangement, including an agreement, method, program, or other arrangement that applies to one person or individual.
The movement of funds from a 457(b) plan to an IRA, typically tax-free if completed within 60 days, is actually shifting money from one tax-advantaged account to another.However, any distributions ...
Deferred compensation plans in the US often have the benefit of employers' matching all or part of the employee contribution. In the US, Internal Revenue Code section 409A regulates the treatment for federal income tax purposes of “nonqualified deferred compensation”, the timing of deferral elections and of distributions. [26]