457(b) - Government Entities
A 457(b) plan for government entities is only for state and local governments. This plan allows employees and independent contractors to contribute to their own retirement plan.
Consult a benefit plan advisor to set up a 457(b) plan for a government entity.
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457(b) plan on IRS.gov
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- Can only be set up by state and local governments
- Participant's retirement benefits based on participant's account balance
- Allows employees and independent contractors to contribute to their own retirement by deferring compensation, up to $17,0001 and an additional $5,5001 if age 50 or older
- May allow employees and independent contractors to make additional contributions for 3 years prior to normal retirement age
- Plan may allow employer contributions
- The maximum annual contributions are the lesser of 100% of includible compensation or $17,0001 plus catch-up contributions or more for 3 years prior to normal retirement age
- May cover all employees and independent contractors in the plan
- Plan may permit loans and hardship withdrawals
1Dollar limits are for 2012 and are subject to cost-of-living adjustments for future years. |
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Maintaining a plan on IRS.gov
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Correcting Plan Errors on IRS.gov
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ADDITIONAL RESOURCES
- Publication 4484, Choose a retirement plan for employees of tax-exempt and government entities (schools, hospitals, churches, charities (.pdf file)
