When it comes to retirement planning, finding plans that are similar is not uncommon.
Many plans are comparable in certain facets but are completely different in others. Much like 401K and 403(b) retirement plans, a 457(b) deferred compensation plan helps out similar employees and industries. Those who work for the government on all levels and various non-profits are eligible for a 457(b) retirement plan.
Listen to a Retirement Planning Advisor
457(b) plans are also similar to 401K and 403(b) plans in that they are tax-deferred and are contributed to by intentional payroll deductions. However, a 457(b) does contain a few different aspects when compared to other plans.
The advisors at our retirement planning services office in Surprise, Arizona can explain more similarities and differences when comparing a 457(b) plan with others, so reach out to us today!
What’s Different About a 457(b) Plan?
Having a 457(b) plan doesn’t mean that your retirement will come sooner or later than others. Like any other plan, the 457(b) plan has some qualities that make it unique from most others. Learning about these differences from a retirement planning advisor can help you get the most out of your plan.
Some of the main differences from other plans compared with the 457(b) include:
- Participant’s age starts at 50
- Catch-up contribution limit is different
- Large catch-up contributions can start up to three years before you start your retirement
- Ability to borrow from plan under several conditions
- Distributions can only be made under specific circumstances
Get The Most Out of Your 457(b)
Retirement planning with a 457(b) plan doesn’t have to be a complex process.
There are plenty of viable options our retirement planning advisors can inform you on concerning your 457(b). So make the most out of your retirement plan. If you have a new job and are thinking about rolling your 457(b) over to an IRA, don’t worry, our retirement planning services office in Surprise, Arizona is open for any questions you might have. Give us a call and we’ll lend a helping hand!