457 Plans

A 457 Plan is very similar to a 401k plan and a 403b plan.  These plans are generally offered to government employees (state and local) and some tax-exempt organizations.  These plans are commonly called non-qualified deferred compensation plans.

 A non-qualified plan is an employer sponsored plan that does not meet the tax qualification requirements under Internal Revenue Code Sec 401(Qualified Plan Requirements).  Many retirement plans are non-qualified includings SEP, SIMPLE and Tax Sheltered Annuities (TSA).  These type of plans are governed by their own rules.

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Contribution Limits

401k, 403b, 457 and Roth 401k

Tax  Year         Under Age 50     Above Age 50

   2006                 $15,000              $20,000

   2007                 $15,500              $20,500

   2008                 $15,500              $20,500