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Individual Retirement Plans
Employer-Sponsored Retirement Plans
Non-Qualified Retirement Options
457(b) Plan

457(b) Plan
Sponsored by state and local government employers, 457(b) Plans help employees build retirement savings and reduce taxes.

Employers such as state and local governments (including counties, cities, municipalities, villages and townships) may adopt governmental 457 Plans.  Other government employers such as transit authorities, public utilities, public schools and universities may also establish a 457(b) Plan for their employees. Certain private-sector, tax-exempt employers and executives and government officials may be eligible for a 457 Plan, which differs from the 457(b) Plan discussed above.

Because of recent legislative changes, 457(b) Plans are more attractive than ever. They provide for pretax salary deferrals and tax-deferred growth on these deferrals until withdrawal, at which time they are taxed at ordinary income rates.

Additional information

Employee Salary Deferral Contributions


Age as of 12/31 or the Calendar Year Tax Year 2013
Under 50 $17,500*
Age 50 or older $23,000*


Salary deferrals cannot exceed 100 percent of an eligible plan participant's annual compensation.

Eligible plan participants attaining age 50 by Dec. 31 of the calendar year may make additional catch-up contributions up to $5,500*.

To receive a distribution from a 457(b) Plan, employees must reach the age of 70½ during the current calendar year or have a triggering event such as death, severance from employment (including retirement) or an unforeseen emergency.

Unlike 401(k) Plans, distributions from 457(b) Plans are not subject to the 10 percent premature distribution tax when distribution is made before age 59½. 

Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America, 1701 1st Avenue, Rock Island, IL 61201, 309-558-3100. Member: FINRA, SIPC. Products are available in most states. Individual representatives may not be licensed to sell all products.





*These amounts are subject to indexing by the Internal Revenue Service and may increase in the future.