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Q&A: I’ve got a 457(b), not a 401(k). Are they insured the same?

June 24, 2024 By Liz Weston

Dear Liz: As an employee of a public agency that offers a 457(b) account, it would be helpful to know if these accounts are insured in a manner similar to a 401(k).

Answer: Employer-provided, tax-deferred 457(b) accounts are quite similar to 401(k)s. Both allow employees to make pretax contributions to a retirement account that can be invested for future growth. The accounts aren’t insured the same way bank accounts are, but the money is kept in a separate trust that’s protected from creditors.

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Filed Under: Q&A, Retirement Savings Tagged With: 401(k), 457, 457 plan, 457(b), payroll tax deferral, retirement accounts

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