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February 23, 2009

Governmental 457 plan

Your Guide



An eligible 457 plan  established and maintained by a State, political subdivision of a State, any agency or instrumentality of a State or political subdivision of a State, and certain other organizations (other than a governmental unit) exempt from tax

Referring Cite

IRC § 457(b), IRC § 457(e)(1)(A)

Additional Helpful Information

  • Under a governmental 457 plan, only individuals who perform service for the employer may be participants.
  • A governmental 457 plan, must provide that the maximum amount which may be deferred under the plan for the taxable year (other than rollover amounts) shall not exceed the lesser of 100& of compensation or the dollar limit in effect for the year for deferred compensation.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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