What Is a Roth 457 Plan?

A Roth is a contribution option within a 457 plan. In a traditional 457 plan, participants can make pre-tax contributions that are then taxed along with the earnings in retirement. Roth 457 contributions differ because they are made after-tax and are not taxed when the assets are withdrawn.

How Roth 457 Plans Work

Roth contributions and associated earnings can be withdrawn tax-free in retirement if the requirements for a “qualified distribution” (also known as withdrawal) are met. If the Roth contribution option is available in your 457 plan, you can designate a portion or all of your contributions to the plan as Roth.

Contribution Limits



There are risks associated with investing in mutual funds and variable annuities, including potential loss of principal value.

Variable annuities are subject to market risk which may cause value to fluctuate including loss of principal for variable accounts. Variable annuities are long term investments that involve insurance related fees and charges such as mortality and expense risk charges and administrative charges.

For more complete information about funds including a fund’s objectives and risks, and its charges and expenses, please call 1-800-292-1950 for a product prospectus. Please read the prospectus and carefully consider the investment objectives, risks and charges and expenses and other information before investing because these factors will directly affect future returns.

Guarantees and/or payments are based on the claims-paying ability of Issuer and not on the value of the securities within the account.

MEA Financial Services/Paradigm Equities, Inc. does not give tax or legal advice. The comments regarding the law and tax treatment simply reflect our understanding of current interpretations of such laws. Since laws are always subject to interpretation and possible changes, we recommend that you seek the counsel of an attorney, accountant or other qualified tax advisor regarding these matters as it applies to your particular situation.