457 Deferred Compensation Plans overview

Providing the information you need to get started with Mutual of America today.

What are Section 457 Deferred Compensation Plans?

There are two types of Section 457(b) plans:

Governmental 457(b) – offered by governmental entities to all employees. These plans are very similar to qualified defined contribution plans, like 401(k) and 403(b) plans.
Nongovernmental 457(b) – offered by tax-exempt employers to a select group of management or highly compensated employees. These nonqualified deferred compensation plans are not made available to all employees and are generally used as an add-on for executives. Assets remain the property of the employer and are subject to claims of the employer’s creditors.

Employers and employees benefit from the 457 plans in many ways:

Benefits for employers

Helps attract and retain quality employees.
Helps your employees build retirement security.

Benefits for employees

Contributions are made on a pretax basis.
Contributions may also be made by employers.
Amounts deferred under the plan, as well as any investment earnings, are not taxed until they are withdrawn, at which time they are taxed as ordinary income.

What our clients are saying*

"The employer match we offer...

combined with the outstanding education provided by Mutual of America's representatives, including special COVID-19-related information and one-on-one attention, show our employees that their financial well-being matters."

- Lillian Johnson, Executive Director of Community Legal Services, Inc.

457 Plan highlights

Governmental Section 457(b) Deferred Compensation Plan

For employees of state and local governments.
Assets held for exclusive benefit of employees.
Plans offered by Mutual of America accept salary deferrals only.
Contributions subject to annual limits.

Section 457(b) Deferred Compensation Plan

For employees of tax-exempt organizations.
Limited to management and highly compensated employees.
Plan is unfunded.
Assets are subject to claims of employer's creditors.
Contributions subject to annual limits.

Section 457(f) Deferred Compensation Plan

For employees of tax-exempt organizations and eligible municipal employees.
Limited to management and highly compensated employees.
Plan is unfunded.
Assets are subject to claims of employer's creditors.

You should consider the investment objectives, risks, and charges and expenses of the investment funds and, if applicable, the variable annuity contract, carefully before investing. This and other information is contained in the funds' prospectuses and summary prospectuses and the contract prospectus or brochure, if applicable, which can be obtained by calling 800.468.3785 or visiting mutualofamerica.com. Read them carefully before investing.

*Statements made by clients of Mutual of America are not paid testimonials. These testimonials may not be representative of the experience of other clients and are not indicative of future performance or success.