457(b) Plans
457(b) plans are very similar to 401(k) Plans.
Your 457(b) contributions reduce your wages in Box 1 of your W-2. Since your income is already reduced by your 457(b) contributions, you do not get a separate deduction on your tax return for 457(b) contributions.
Do NOT report interest income, dividend income, capital gains, or any type of income from your 457(b) account. All investment income within a 457(b) retirement account is not taxable income on your tax return and does not get reported anywhere on your tax return. A 457(b) account is only taxed when you take a distribution from your 457(b) account and get a Form 1099-R.
Your 457(b) contributions reduce your wages in Box 1 of your W-2. Since your income is already reduced by your 457(b) contributions, you do not get a separate deduction on your tax return for 457(b) contributions.
Do NOT report interest income, dividend income, capital gains, or any type of income from your 457(b) account. All investment income within a 457(b) retirement account is not taxable income on your tax return and does not get reported anywhere on your tax return. A 457(b) account is only taxed when you take a distribution from your 457(b) account and get a Form 1099-R.
