What Is A 457(b) Investment Plan?
A 457(b) investment plan is a tax-exempt savings benefit known as a government 457(b) deferred compensation plan for employees of a city, township, water district, park board or similar entity. The goal of this type of investment plan is to help public employees generate a sound financial plan to prepare for their retirement years. With a 457(b) retirement plan participants contribute to their investment plan with the help of regular payroll deductions. In this type of plan the participant decides where to invest their money based off of the options selected by the employer who is the plan sponsor.
There are many benefits to participating in a 457(b) investment plan:
- Your contributions and earnings are tax-deferred
- You may be able to take a tax credit for elective deferrals
- You may take an unforseeable emergency withdrawal, provided you meet the criteria
- You may be eligible for a loan, provided you meet the criteria
- Your account is protected by law from anybody taking control of your assets including your employer provided you have certain exemptions
Our retirement specialists at Gulf Coast Educators Insurance are available Monday – Friday to answer your questions about 457(b) investment plans. We invite you to contact any of our three life insurance offices in Naples, Ft. Myers and Port Charlotte.