403(b) & 457 Plans
Workplace retirement plans for nonprofit and government employees, with different early-withdrawal rules.
A 403(b) covers employees of schools, hospitals, nonprofits and religious organizations, and shares the 401(k) contribution limits. Investment menus have historically been narrower and, in some plans, built around annuity products carrying higher fees than a comparable 401(k) lineup.
A 457(b) covers state and local government employees, and differs in one consequential way: distributions after separation from service are not subject to the 10% early withdrawal penalty, at any age. That removes the constraint most other retirement accounts impose before 59½.
The two have separate contribution limits rather than a shared one, so an employee offered both could contribute $23,500 to each in 2025, reaching $47,000 of tax-advantaged space. This is a feature of holding both plan types, and it does not extend to holding a 403(b) and a 401(k).
Worked through
Access to both plan types
A public school employee offered both a 403(b) and a 457(b), at 2025 limits.
- 403(b) limit
- $23,500
- 457(b) limit
- $23,500
- Combined space
- $47,000
- 457(b) after separation
- No 10% penalty
The limits are separate rather than shared, and the 457(b) carries no early withdrawal penalty once employment ends.
See your own 403(b) & 457 plans
Promi computes this from your linked accounts, with the definition one click from the number.
Try the demo