Who can participate in a Section 457 deferred compensation plan?
A Section 457 deferred retirement and compensation program is one of the most flexible retirement programs available. However, it is only offered to state and municipal employees and employees of nonprofit organizations. If you qualify, you should seriously consider participating in a Section 457 plan. Contributing to a Section 457 plans is a great way to reduce your annual income tax bill and an even better way to grow your retirement fund on a tax-deferred basis. The plans also have relatively liberal withdrawal rules. And certainly, you should take part in a Section 457 if you are not eligible for a tax deductible individual retirement plan (IRA) or similar program.
