457(b) Plan

The 457(b) plan is an employer-sponsored voluntary retirement savings plan that allows you to save money for retirement on a tax-deferred basis. The plan contains most of the same features of the 403(b) plan, but is different in one unique way. Distributions from a 457(b) Deferred Compensation Plan are not subject to the 10 percent excise tax for early withdrawal.

In 2022, you can contribute 100 percent of your includible compensation up to $20,500, whichever is less. If you are age 50 or older, you can contribute up to an additional $6,500 for a total of $27,000.

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