457(b) and 401(k) Plans (Roth and Pre-Tax)

457(b) and 401(k) Plans are designed to work with your employer, allowing you to contribute through your paycheck. Some employers may also provide matching or other contributions. You can only withdraw your money when you become eligible.

Three types of contributions are typical: 1) Your employer contributes; 2) Your employer matches your contributions; 3) You contribute. You may also roll over funds from other retirement plans.

With Roth 457(b) and 401(k) plans, you generally pay taxes now, contribututing with after-tax dollars and withdrawing tax-free when eligible.

With pre-tax 457(b) and 401(k) plans, you generally pay taxes later, contributing with pre-tax dollars and paying income tax when withdrawn.