401(k) plans and 457 plans are both tax-advantaged retirement savings plans. 401(k) plans are offered by private employers, while 457 plans are offered by state and local governments and some nonprofits.
People also ask, are 457 Plans good?
While there are both pros and cons to choosing a 457(b) retirement savings plan, the pros can tend to outweigh the cons in this case. If you have the ability to contribute to a 457(b), you’re going to enjoy some benefits, like no tax penalties on qualified withdrawals, better catch up provisions, and more.
Furthermore, can I contribute to both 457 and 401k?
Thus, the maximum deferral limit of $19,500 may be contributed to a 457(b) plan, regardless of whether any deferrals or employer contributions have been made to a 403(b) or 401(k) plan. For organizations offering a combination of these plans, this presents an opportunity for a participant to contribute to both.