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Preview457(b) Plan

457(b) Plan

Government 457(b) deferred compensation plans, also known as 457 retirement plans are designed for state and municipal workers.

If you participate in a 457 plan, you can contribute a portion of your salary to a retirement account.

We have agreements with various providers to assist you in setting up and servicing a 457(b) account through your employer’s plan.

You may be able to participate in your program. Benefits of your plan include:

Your contributions are made to your account BEFORE taxes are taken out. As a result, your taxes are reduced.

Here is an example:

$100 contribution

X 31 % Marginal Tax Bracket

(25% federal, 6% NYS)

_______________________

$31 per contribution withholding

$100 contribution

$31 withholding decrease

_______________________

$69 decrease in take home pay

Each $100 contribution to your plan would only decrease your take-home pay by $69. This puts more money to work for you.

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