Project your retirement savings for state and local government or certain non-profit employees. 457(b) plans offer unique tax advantages for early retirees.
Contribution Details
Retirement Projection
Projected Balance$1,287,631After 25 years
Account Growth Over Time
About this calculator
Overview
Project your retirement savings for state and local government or certain non-profit employees. 457(b) plans offer unique tax advantages for early retirees.
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Pro Tips
What is a 457(b) plan?: A 457(b) is a tax-advantaged retirement plan available to state and local government employees, as well as some non-profit executives. It allows for tax-deferred contributions similar to a 401(k).
What is the biggest advantage of a 457(b)?: Unlike 401(k) or 403(b) plans, there is no 10% early withdrawal penalty if you leave your employer before age 59.5. This makes it ideal for people planning to retire early.
Can I contribute to both a 457(b) and a 403(b)?: Yes! If your employer offers both, you can often contribute the maximum to both plans simultaneously, effectively doubling your tax-advantaged savings limits.
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Fun Facts
"457(b) plans are sometimes called 'deferred compensation plans' because you are deferring a portion of your salary until retirement."
"Most 457(b) plans allow a 'catch-up' contribution in the three years leading up to your normal retirement age, which is even higher than the standard age-50 catch-up."
"Funds in a 457(b) are technically assets of the employer in some non-profit cases, but protected in trust for government employees."
