457

As a public employee, you could contribute to your 457(b) retirement plan to save for your future. In many ways, a 457(b) plan is similar to a 403(b) or 401(k) plan. A 457(b) plan is offered through your employer and is designed to help you save money for retirement.

Also known as a deferred compensation plan, a 457(b) plan is commonly offered to government employees – especially those working for local and state governments.

A few examples of who might have this plan are:

• Government officials
• Police officers
• Firefighters
• Emergency medical technicians
• Public school teachers
• Those who work for a city, like sanitation workers

Using this employer-sponsored retirement account, you can contribute pre-tax dollars. Also, you won’t pay taxes on that money until you withdraw it, usually during retirement. In this way, your contributions can grow tax-deferred until withdrawals are taken.

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