What is a characteristic of a governmental 457(b) plan compared to other retirement plans?

A governmental 457(b) plan is designed specifically for employees of state and local governments and certain non-profit organizations, making it distinct from other retirement plans. This exclusivity is a key characteristic that sets it apart from other retirement savings options that may be available to a broader range of employees, including those in the private sector.

Additional features of governmental 457(b) plans may include the ability to defer compensation and enjoy tax benefits, but the primary defining aspect remains that they are only accessible to qualified governmental workers. This ensures that the plan is tailored to meet the retirement needs of those employed by government entities, differentiating it from other plans that cater to a wider audience.