Add 457(b) to Investment Account Type Drop Down Box
Matt Newland
Member ✭✭
There are some differences between 401(k) and 457(b) including:
457(B) PLANS
Offered by state and local governments to their workers.
Contribution limit is the lesser of 100% of employee's includable pay, or $19,500 for 2021 ($20,500 for 2022).
No early withdrawal penalty.
401(K) PLANS
May be offered by any employer.
Salary deferral limit was $19,500 for 2021 ($20,500 for 2022).
10% penalty applies on early withdrawals.
457(B) PLANS
Offered by state and local governments to their workers.
Contribution limit is the lesser of 100% of employee's includable pay, or $19,500 for 2021 ($20,500 for 2022).
No early withdrawal penalty.
401(K) PLANS
May be offered by any employer.
Salary deferral limit was $19,500 for 2021 ($20,500 for 2022).
10% penalty applies on early withdrawals.
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Comments
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FYI - merely cosmetic ...403(b) plans are available for schools, churches, and nonprofits,
457(b) plans are more geared toward government and municipal employees (but may be offered by tax-exempt organizations for a select group of highly compensated or management employees),
and 401(k)s are generally offered by for-profit businessesQWin Deluxe Subscription - Win100
