Final answer:
457 plans are retirement savings plans for employees of nonprofit organizations and governmental entities, including hospitals, schools, and agencies like Health and Social Services. Thus, the statement in the question is true.
Step-by-step explanation:
457 plans are designed as retirement savings plans for employees of nonprofit organizations and governmental entities. This means they are available to employees of organizations such as hospitals, schools, and a variety of other public and nonprofit institutions. These plans resemble 401(k) and 403(b) plans in terms of pre-tax contribution options and tax-deferred growth on investment earnings. Specifically, 457 plans are available for:
- A nonprofit health organization
- A private hospital
- A governmental agency like Health and Social Services
So, employees of a nonprofit organization such as a hospital or school are indeed eligible for a 457 retirement savings plan. Therefore, the claim in the question is true.