How much can I contribute to a 457(b) in 2026?

The 2026 limit is $24,500. With the age 50-59 or 64-plus catch-up the total is $32,500, and ages 60 to 63 can contribute up to $35,750 under the SECURE 2.0 super catch-up.

Can I withdraw from a 457(b) without penalty?

Yes. Once you separate from the employer sponsoring the plan, 457(b) withdrawals are not subject to the 10% early-withdrawal penalty that applies to most other retirement accounts before age 59 and a half. You still owe ordinary income tax.

Plan guide · For educators & public employees

457(b) Plan

Q: What is a 457(b) plan?

A 457(b) is a tax-deferred deferred-compensation retirement plan offered by state and local governments and many public-school districts. You contribute pre-tax from your paycheck and the money grows tax-deferred until withdrawal.

A 457(b) is a tax-deferred deferred-compensation plan offered by state and local governments and many public-school districts. You contribute up to $24,500 in 2026 ($32,500 or $35,750 with catch-up). Its defining advantage: no 10% early-withdrawal penalty once you leave the employer, even before age 59½.

How a 457(b) works

A 457(b) lets you defer part of your salary into a retirement account before taxes. The contributions lower your taxable income today, the balance grows tax-deferred, and you pay ordinary income tax when you withdraw in retirement. For public-school and government employees, it sits alongside your pension and any 403(b) as a third pillar of retirement savings.

The no-penalty advantage

What sets the 457(b) apart is early access. Most retirement accounts, including the 403(b), charge a 10% penalty if you withdraw before age 59½. A 457(b) does not: once you separate from the sponsoring employer, you can access the money at any age without that penalty (you still owe income tax). For an educator planning to retire in their mid-to-late fifties, this makes the 457(b) a natural bridge to a pension or Social Security. The 2025 repeal of WEP and GPO means most teachers now also keep their full Social Security, making that bridge shorter.

2026 contribution limits

The standard 457(b) limit for 2026 is $24,500. The age 50-59 or 64-plus catch-up brings the total to $32,500, and the SECURE 2.0 super catch-up lets employees ages 60-63 contribute up to $35,750. If your district also offers a 403(b), you can contribute to both plans in the same year, see 403(b) vs 457(b) for how the two compare and stack.

Rolling over an old 457(b)

If you have left a district or government job, you may have a 457(b) you are no longer contributing to. Governmental 457(b) balances can usually be rolled into an IRA or your current employer plan, which can lower fees and simplify your accounts. Because rollover rules differ between governmental and non-governmental 457(b) plans, it is worth a quick review before you move anything. Have a specialist check your old plan.

See it in your full picture

Your 457(b) is one piece of a retirement that also includes your pension and Social Security. Use the Teacher Retirement Calculator to see all your income sources together, or review the approved plans available in your district.

Questions

What is a 457(b) plan?

A tax-deferred deferred-compensation plan offered by state and local governments and many school districts. You contribute pre-tax and the balance grows tax-deferred until withdrawal.

Can I really withdraw without the 10% penalty?

Yes, once you separate from the employer sponsoring the plan. The 10% early-withdrawal penalty that hits most accounts before 59½ does not apply to a 457(b). You still owe ordinary income tax.

Should I get a personal review?

A free review with a licensed educator-retirement specialist can confirm your contribution room, coordinate your 457(b) with your pension and 403(b), and check the fees on any old plans. Talk to a specialist.