Tax-exempt 501(c) organizations such as charities and hospitals can also set up 457(b) plans. Contributions up to $17,500 in 2013 are made through pre-tax salary reductions. Earnings are also tax-deferred while in the plan. Normally you can‘t withdraw money from a 457(b) until you leave the job or retire.
Subsequently, can you make a lump sum contribution to a 457 plan?
“Lump–sum contributions are usually allowed by employer plans and usually must come from another qualified account or qualified employer plan,” Fort says. “For example, a rollover from an existing IRA, Roth, 401(k), 403(b), 457, Simple, SEP and more may be accepted into the current employer plan.”
Moreover, how much can deferred compensation pay?
Elective deferral limit
The amount you can defer (including pre-tax and Roth contributions) to all your plans (not including 457(b) plans) is $19,500 in 2020 and in 2021 ($19,000 in 2019).
What happens to my 457 when I die?
For the 401(a) plan, benefits will be paid to the participant’s estate. For the 457 plan, benefits will be paid to the participant’s estate.