Public Employees, depending on their employer, are eligible for different types of retirement plans:
- 403(b)/403(b)(7) Plan: A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement income accounts can invest in either annuities or mutual funds.
- 457 Plan: A non-qualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.
These plans can have different types of underlying investments for your retirement savings.
- Mutual Funds
- Fixed Annuities
- Variable Annuities
These different investment types address specific needs and objectives. Understanding how each of them works plays an important role in pursuing your retirement plan goals.