So I have been doing research on 457 plans and have come across a lot of information that has confused me. My understanding is that state 457 plans are put in trusts for the employees, so if something were to happen to the state/local government creditors can not collect it and that private company 457 plans in the event of a bankruptcy are up for grabs by the creditors. Is this correct, or are there exceptions to these rules, or am I wrong?