Personal Finance
How does a 457(b) plan work?
Quick Answer
A 457(b) plan lets state, local, and tax-exempt employees defer up to $23,500 in 2025. Governmental 457(b) plans uniquely have no 10% early-withdrawal penalty after separation. You can also stack a 457(b) with a 403(b) or 401(k) for double deferrals.
Warren Team
Updated April 26, 2026
37
Warren Team
Updated April 26, 2026
37
Important Disclaimer:
The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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