457 Explained In 60 Seconds

If that was too fast read this:

The 457 is a retirement plan similar to a 401k, but only being offered for state and local public workers and nonprofit organizations.

This type of account is tax-deferred. Which means this reduces your taxable income now and you pay taxes later once you retire.

With this plan you usually can invest in mutual or index funds. There are two types of 457. 457b is the most common that's offered to State and local government employees. The other is the 457(f), which is offered to highly paid government and non-government employees.

With this retirement plan people can contribute up to 100% of their salary, as long as if it does not go over the limit for the year. As of 2019 people could contribute up to $19,000 per year.

Depending on employer, if you're over the age of 50 you can contribute an additional $6,000 making the limit $25,000 a year. Also if you're within 3 years of retirement age you can contribute twice the amount which is equal to $38,000.

The downside of the 457 is that if employers give you matching contributions that counts towards your yearly limit. So if your employer gives you $10,000 you only can put in $9,000

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DISCLAIMER:
This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

[savelikeaprowithleah]

Wow! You did really well! Thanks for sharing!

[DanielIles]

Memorizing the whole thing and not fumbling is the impressive part

[GuidedInvestor]

I really like these videos, no bullshit, just facts

[MissEmpresss]

Yo you’re dope 👌🏾 keep doing your thing..had to subscribe

[TheTradingJournal-]

Dang what's the trick to remembering all of that?

[QuesttoFIRE]

I wish I qualified for the 457b at my employer, but it was only for higher paid physicians and executives. 😕

[RyanGiffin]

I feel like this should be an Olympic sport 😂

[Nepthu]

With a 457 plan, is it possible to contribute say 50% of your income for one year and then DECREASE it to 10% the subsequent year? I ask because I'm single right now and have no problem with a Spartan lifestyle, but I don't think I could keep it up forever.

[vicepresidentmikepence]

This guy is trying to explain the 457 in one minute, yet he pronounces twenty nineteen..two thousand nineteen?