Can Employers Contribute to 457(b) Plans?

Q: Can employer contributions be made to a 457(b) plan?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer: 

A: Yes, but there are significant disadvantages to doing so.

There is only one limit—currently $23,500 (not including any eligible catch-up contributions)—that applies to the combination of employer contributions and employee elective deferrals to a 457(b) plan, meaning that employer contributions limit the amount available for employee elective deferrals.

Thus, employer contribution opportunities are much more limited than in a qualified retirement plan—such as a 401(k) or 403(b) plan, for which the combined limit on employer contributions and employee elective deferrals is $70,000 in 2025. Therefore, the employer contributions are generally less favorable from a tax perspective.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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