What do these 401(k)/457(b) numbers mean?

Those are the code sections in the IRS rules that allow PERA to operate these plans.  These are deferred compensation plans and are authorized under IRC (Internal Revenue Code) sections 401(k) and 457(b).

The most important thing to know is which one in which you are participating.  Technically, these are two separate plans.  You can contribute to either or both simultaneously.  The withdrawal rules (getting your money out!) are different between the two, and this can have a big impact on your future planning.  See the PERAPlus 401(k) vs. 457(b) Comparison Chart to learn more about the differences.

Category: Frequently Asked Questions


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