A 457 plan is a type of retirement plan offered by government and nonprofit organizations. 457 plans allow you to defer a portion of your pay, invest in various assets, and pay taxes upon withdrawal.

401(k) plans and 457 plans are tax-advantaged retirement savings plans. 401(k) plans are offered by private employers, while 457 plans are offered by state and local governments and some nonprofits.

A 457 plan can also be used in tandem with other accounts like a 401(k) or IRA. In many cases, you may be able to choose both a 457 and another plan to maximize your contributions.

457 vs. 401k: Similarities and Differences. Learn the largest similarities and differences between a 457 plan versus a 401(k). Eligibility. One major difference in eligibility between the plans is ...

457 plan contribution and catch-up limits for 2025. The maximum amount you can contribute to a 457 retirement plan in 2025 is $23,500, including any employer contributions.

Both 457 plans and 403(b)s are retirement accounts available to public sector employees—but each has its own rules, features, and benefits.

A 457 plan is a kind of defined contribution retirement plan for state and local public employees. It can also be offered by certain nonprofit organizations.

In this episode of Ask The Hammer, a reader asks: I have a governmental 457(b) plan, a deferred compensation plan. And I understand that I can take distributions from this plan at any time without ...

The maximum amount you can contribute to a 457 retirement plan in 2024 is $23,000, including any employer contributions. That’s an increase of $500 over 2023. For example, if your employer ...