Jan 28, 2010
Horizons Retirement Plan…what’s The Difference Between Horizons 457 And 401k Savings?
both are pre-tax contributions. 401k plan is basically for all types of employers while a 457 is generally for a governmental entity. 457 is considered a deferred compensation program rather than a pre-tax deferral program. Only difference between the two is that one is considered an employee deferral while the other is considered an employer contribution in lieu of pay. So someone can participate in both and defer $15.5k in each.
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