Which of the following is a feature of a 457 plan?

A 457 plan is a type of deferred compensation plan that is primarily designed for government employees and certain non-profit employees. It allows participants to set aside a portion of their salary for retirement on a tax-deferred basis. The characteristic that makes the selected answer accurate is that it draws a comparison to Tax Sheltered Annuities (TSAs), which also serve public employees. Both vehicles are aimed at providing tax advantages for the retirement savings of public sector workers, helping them to build financial security for their future after employment.

Options suggesting that the plan is available only to specific groups, such as teachers or federal employees, misrepresent the broader application of 457 plans. While certain 457 plans may be more common in public sector roles, the plan itself is not exclusively intended for teachers. Similarly, it does not apply solely to federal employees or private sector workers, emphasizing its inclusivity for qualified state and local government employees.