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The Missouri Deferred Compensation Plan is a retirement savings initiative for state employees, designed to provide an additional income source in retirement, supplementing pensions and Social Security. It is a defined contribution plan, allowing employees to contribute after-tax dollars, select their own investments, and manage their account throughout their careers and into retirement. Known as a 457 plan, it serves as a public sector equivalent to a 401(k) in the private sector. A key advantage of the 457 plan is that public employees can access their savings before age 59½ without incurring an early withdrawal penalty, making it a valuable benefit for employees.
