A 457(b) is a deferred compensation plan available to employees of city, county and state government entities; as well as public schools and colleges. It allows employees to make pre-tax salary deferrals of up to $16,500 (2011), $22,000 (if age 50 or older) or 100% of compensation, whichever is less.
457(b)plans allow employees to save for retirement while reducing their taxable income. A 457(b) plan helps employees supplement their state pension plans. This plan can be sponsored by city, county and state governments; as well as public college and universities. Federal government entities are not eligible to sponsor 457(b) plans.
The employees of Warren Wealth Management do not provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.