457 Deferred Compensation Plan
The City of Pittsburgh offers eligible employees the opportunity to defer compensation on a pre-tax basis into a governmental 457 Plan. A 457 plan is a voluntary non-qualified tax-deferred compensation plan that is similar to a 401K or a 403B. An employee may defer compensation into the plan on a pre-tax basis.
For example; if you earn $25,000 per year, and set aside $3,000 dollars into the plan, you will be taxed on $22,000 per year instead of $25,000 per year.
No waiting period to begin investing or rolling over a previous savings plan. (401K) and/or (403B)
There is a ceiling to how much you can invest per year. $19,500 for anyone under the age of 50. $25,500 for anyone age 50 and over.
This plan has loans and emergency hardship withdrawl features.