457(b) vs. 403(b)

The 457(b) is a tax-deferred retirement plan designed to help you invest on a regular basis for your retirement. It is offered through your employer but only for public employees and certain employees of many tax-exempt organizations. Your contributions are made through payroll deductions, which means contributions are taken directly from your salary before it is taxed. This reduces your gross taxable income by the contribution made.

• Each plan offers its participants an array of investment options, ranging from conservative to very risky
  
• Contributions to the plan are limited on an annual basis, due to tax laws
  
• Money in the account grows Tax-Deferred
  
• When you can access the money in your plan:
   - Before you retire, under certain restrictions, you may take withdrawals from the plan
   - Once you retire from your employer, you may begin distributions from the plan

The 403(b) is a tax-deferred retirement plan designed to help you invest on a recurring basis for your retirement. It is available to employees of qualifying hospitals, educational institutions, and many not-for-profit organizations, offered by the employer. Contributions are taken directly from your salary before it is taxed, lowering your overall taxable income for the year.

• Plans offer its participants a full spectrum of investment options, tailored to different risk tolerances
  
• Contributions to this plan have an annual maximum, due to tax laws
  
• Your employer may match all or a percentage of your contributions
  
• Money in the account grows Tax-Deferred
  
• When can you begin withdrawals from your plan:
   - Once you retire and are 59½ or older
   - If you decide to leave your current employer
   - Disability or Financial Hardship