A 457 retirement plan is a tax-advantaged retirement savings plan offered to employees of many state and local governments and some nonprofit organizations. It is similar to a 401(k) plan in the private sector, but it is designed for public sector employees. The plan allows employees to deposit a portion of their pre-tax earnings in an account, reducing their income taxes for the year while postponing the taxes due until the money is withdrawn after they retire. A Roth version of the 457 plan, which allows after-tax contributions, may be allowed at the employers discretion. There are two main types of 457 plans: the 457(b) plan and the 457(f) plan. The 457(b) plan is most often offered to civil servants, police personnel, and other employees of government agencies, public services, and nonprofit organizations such as hospitals, churches, and charitable organizations-deferred-compensation-plans.html). Participants set aside a percentage of their salary into a retirement account, and the employees choose how their money is invested from a list of options, mostly mutual funds and annuities. The 457(f) plan is also known as a SERP for Supplemental Executive Retirement Plan, and it is designed for executives at nonprofit organizations.