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County of San Diego Deferred Compensation Plan 457(b) Participation Agreement DC-4769-1211 Things to Remember r Complete all of the sections on the Participation Agreement that apply to your request.

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Unlike other retirement plans, under the IRC, 457 participants can withdraw funds before the age of 59½ as long as you either leave your employer or have a qualifying hardship. You can take money out of your 457 plan without penalty at any age, although you will have to pay income taxes on any money you withdraw.

Non-governmental 457 plans must remain unfunded. Plan assets are not held in trust for employees, but remain the property of the employer (available to its general creditors in the event of litigation or bankruptcy).

Since 457(b) plans are sponsored by governmental entities, they are exempt from ERISA rules. However, ERISA rules are often considered when establishing policy, procedure and best practice in the administration of a 457(b) deferred compensation plan.

Key Takeaways. 401(k) plans and 457 plans are both tax-advantaged retirement savings plans. 401(k) plans are offered by private employers, while 457 plans are offered by state and local governments and some nonprofits.

While there are both pros and cons to choosing a 457(b) retirement savings plan, the pros tend to outweigh the cons in this case. If you have the ability to contribute to a 457(b), you're going to enjoy some benefits, like no tax penalties on early withdrawals, better catch up provisions and more.

401(k) plans and 457 plans are both tax-advantaged retirement savings plans. 401(k) plans are offered by private employers, while 457 plans are offered by state and local governments and some nonprofits.

A 457(b) plan is an employer-sponsored, tax-favored retirement savings account. With this type of plan, you contribute pre-tax dollars from your paycheck, and that money won't be taxed until you withdraw the money, usually for retirement.

Contributing to both a 401(k) and a 457(b) retirement plan allows you to double your tax-deferred savings and reduce your taxable income, and the IRS says that's perfectly OK. Having both types of accounts can be helpful if you need to withdraw money because there are no early withdrawal penalties on a 457(b).

Eligible plans under section 457(b) are not subject to the requirements of section 409A. ... It does not apply, however, to tax-qualified retirement plans such as 401(k) plans, 403(b) plans, 457(b) plans or similar tax-favored plans, although these plans similarly delay taxation on compensation.

457 plans are IRS-sanctioned, tax-advantaged employee retirement plans. They are offered by state, local government and some nonprofit employers. Participants are allowed to contribute up to 100% of their salary, provided it does not exceed the applicable dollar limit for the year.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232