When it comes to planning for retirement, exploring various retirement savings options is crucial. For employees of government organizations and certain non-governmental employers, a 457(b) retirement plan provides an excellent opportunity to save and secure their financial future. In this article, we will delve into what a 457(b) plan entails, its key features, and the advantages it offers. What is a 457(b) Plan? A 457(b) plan is a tax-advantaged retirement savings vehicle available to employees of state and local governments, as well as certain tax-exempt organizations, such as nonprofits and educational institutions. This retirement plan is named after the corresponding section of the Internal Revenue Code that governs it. Understanding the Two Types of 457(b) Plans: There are two main types of 457(b) plans: governmental plans and non-governmental plans. Governmental 457(b) Plans: These plans are offered by state and local governments to their employees. Contributions to these plans are typically made on a pre-tax basis, reducing taxable income. The funds invested in the plan grow tax-deferred until withdrawn during retirement. Non-Governmental 457(b) Plans: Non-governmental 457(b) plans are offered by tax-exempt organizations, such as nonprofits and