A plan under which employees of state and local governments can contribute part of their salaries such that those earnings will grow tax-deferred until retirement is called a:

Question

Quizplus · Accepted Answer

A plan under which employees of state and local governments can contribute part
of their salaries such that those earnings will grow tax-deferred until retirement is called a Section 457 plan. Profit-sharing and money purchase plans are retirement plans that may be available to employees of for-profit companies. Section 501 of the IRS code covers non-profit corporations.

A Plan Under Which Employees of State and Local Governments