457(b) Retirement
Calculator

A 457(b) plan is a tax-advantaged deferred compensation retirement plan available to employees of state and local governments and certain tax-exempt organizations. Unlike a 401(k), 457(b) plans do not impose an early withdrawal penalty before age 59 1/2 if you separate from your employer, making them uniquely flexible for early retirees.

For 2026, the standard 457(b) contribution limit is $24,500 per year. If you are age 50 or older, you can contribute an additional $8,000 catch-up for a total of $32,500. Under SECURE 2.0, participants aged 60–63 get an enhanced catch-up of $11,250 for a total of $35,750. The special 3-year catch-up provision allows up to $49,000 per year during the last three years before your plan's normal retirement age.

Yes, this is one of the biggest advantages of a 457(b) plan. If your employer offers both plans, you can contribute the maximum to each — up to $24,500 in your 457(b) and $24,500 in your 401(k) or 403(b) for 2026. This allows a combined contribution of up to $49,000 per year (or more with catch-up provisions), effectively doubling your tax-advantaged retirement savings.

The special 3-year catch-up provision allows you to contribute up to double the standard limit ($49,000 for 2026) during the three years before your plan's normal retirement age. This provision is unique to 457(b) plans and cannot be combined with the age-50 catch-up in the same year. You must choose one or the other, and you can only use the special catch-up for undercontributed amounts from prior years.

Yes. Distributions from a traditional (pre-tax) 457(b) plan are taxed as ordinary income in the year you receive them. However, unlike 401(k) and 403(b) plans, governmental 457(b) withdrawals are not subject to the 10% early withdrawal penalty regardless of your age, as long as you have separated from your employer. This makes the 457(b) especially attractive for those planning to retire before age 59 1/2.

With a traditional 457(b), contributions are pre-tax and reduce your current taxable income, but withdrawals in retirement are taxed as ordinary income. A Roth 457(b) uses after-tax contributions — you pay taxes now but qualified withdrawals in retirement are completely tax-free. The best choice depends on whether you expect a higher or lower tax rate in retirement compared to today.

For governmental 457(b) plans, employer contributions are separate and do not count toward your employee deferral limit. However, for non-governmental 457(b) plans offered by tax-exempt organizations, employer contributions do count toward the combined limit. Check with your plan administrator to understand your specific plan rules.

This calculator provides a reasonable projection based on the inputs you provide, including salary, contribution rate, employer match, and assumed growth rate. It uses compound interest with annual contributions to project your balance. Actual results will vary based on market performance, salary changes, contribution adjustments, and inflation. Use it as a planning tool and consult a qualified financial advisor for personalized retirement planning.