A 457(b) plan is a retirement plan for state and local government employees and certain nonprofit employees. Unique feature: contributions can be made simultaneously with 401(k) or 403(b) plans — effectively doubling the employee contribution capacity. 2026 limit: $24,000 + $7,500 catch-up at 50+. Government 457(b) plans (vs. nonprofit 457(b)) have no 10% early withdrawal penalty — accessible anytime after separation from service. This makes government 457(b)s exceptionally powerful for early retirees. The 3-year special catch-up allows triple contributions in the final 3 years before normal retirement age, up to twice the annual limit.
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457(b)
August 22, 2026 · Aditya Gupta
Personal Finance
Related terms
403(b)
A 403(b) plan is a retirement plan for employees of public schools, nonprofit hospitals, charities, and religious organizations…
Annuitization
Annuitization is the process of converting a lump sum (or accumulated annuity value) into a guaranteed income stream,…
Annuity
An annuity is an insurance contract paying a stream of income, often for life — designed to provide…
Backdoor Roth Conversion
The Backdoor Roth Conversion strategy enables high earners who exceed Roth IRA income limits to fund a Roth…
Beneficiary IRA
A Beneficiary IRA (Inherited IRA) is a retirement account inherited from a deceased owner. Post-SECURE Act 2019, most…
Bucket Strategy
The bucket strategy is a retirement withdrawal approach that segregates assets by time horizon into 'buckets': Bucket 1…
