403(b) and 457 Plans

A 403(b) plan is a tax sheltered annuity plan that may only be sponsored by certain tax-exempt and governmental organizations. The 403(b) is similar to the 401(k) plan but has its own special rules and limitations.

A 457 plan is a deferred compensation plan sponsored by a State, political subdivision or tax exempt organization. Although the 457 is a non-qualified plan, if the plan meets certain limits and restrictions some tax advantages will be realized.