Today, it’s more important than ever to plan for retirement. Many people grew up with social security, a pension plan, and personal savings. Today however, many employers no longer offer a pension plan. Because of the changing retirement environment, ¹ most financial advisors say you need at least 70% of your income to live comfortably. 

Both 403(b) and 457(b) Plans must establish rules for eligibility. The Internal Revenue Code rules require that all employees eligible for a: 403(b) Plan be given an opportunity to enroll and/or change contribution levels at least annually. 457(b) Plan be limited to individuals who perform services for the employer.*

Contributions are made on a pre-tax or post-tax basis through a salary reduction agreement. Unlike a 403(b) Plan, 457(b) Plan limits do not have to be coordinated with contributions to 401(k) or 403(b) Plans. Contributions may be made to a 457(b) Plan, even if the annual maximum contribution limit is reached on other retirement plans.