457

A 457 plan is a defined contribution retirement plan for employees of state and federal governments and agencies as well as certain tax-exempt charitable organizations.  Although many of the same people are eligible for 403(b) and 457 plans, there are several differences.   403(b) plans are owned by the employee, while 457's are held in trust. 457's often allow you to contribute a higher percent of your salary, but they generally have lower maximums than 403(b)'s. 457 plans prohibit loans and withdrawals prior to retirement or stringently limit them, while 403(b) borrowing and withdrawal stipulations are generally more liberal.

Contributions are made with pre-tax money and earnings and contributions are tax-deferred while they are in the plan. Generally, contributions are made by the employee, and not by the employer, although some plans have contributions by the employer.  Please call (203) 237-7900 with questions.

Please Note: Plan distributions may be subject to tax and 10% penalty if withdrawn before age 59 1/2.  Loans are subject to interest charges and possible fees.  This will reduce the retirement benefit if not paid. 

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