Section 457 Deferred Compensation Plan
Definition of "Section 457 deferred compensation plan"
Plan in which a public employer (such as a university, state, county, or municipality) sponsors a retirement savings program, named for the section of the Internal Revenue Code that permits it. This plan allows the employer, upon agreement with the employee, to reduce the employee's salary by a specific amount and invest this amount, with pre-tax dollars, in various financial instruments. Upon termination of employment, the principal amount invested and any investment earnings are distributed to the terminating employee or the employee's estate. A deferred FIXED DOLLAR ANNUITY or VARIABLE DOLLAR ANNUITY are among the financial instruments that can be used to fund this plan.
Popular Insurance Terms
Qualified retirement plan under the internal revenue code Section 457 for employees of the states and political subdivisions within the states. ...
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Amount subtracted from an annuity or from mutual fund proceeds payable to an annuity owner or mutual fund owner to reflect expense fees described in the annuity contract or mutual fund ...
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Attributes of a particular employee benefit plan. For example, a general characteristic of group life insurance is that the whole group is underwritten, not individual members. ...
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