457(b) Deferred Compensation Calculator 2026 β Tax Savings & Growth
Calculate 457(b) contribution tax savings, projected growth, and compare to a 401(k). Includes 2026 limits, catch-up rules, and OBBBA Roth requirement.
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2026 standard limit: $24,500 Age 50+: catch-up $8,000 available
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Enter 0 for states with no income tax $0
Annual Tax Savings
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Actual Contribution
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Projected Balance at Retirement
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No Early Withdrawal Penalty
457(b) Calculation Breakdown
10-Year Growth Projection
| Year | 457(b) Balance | Cumulative Contributions | Investment Growth |
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How the 457(b) Deferred Compensation Calculator Works
Enter your salary, planned contribution, age, and expected return to see your annual tax savings and projected growth. The calculator caps your contribution at the applicable 2026 limit based on your age and chosen catch-up option.
Key 2026 457(b) Limits
Standard limit: $24,500
Age 50+ regular catch-up: +$8,000 = $32,500 total
Special 3-year pre-retirement catch-up: $49,000 total
OBBBA: income > $150K → catch-up amounts must go to Roth
No 10% early withdrawal penalty (unlike 401k / 403b)
Age 50+ regular catch-up: +$8,000 = $32,500 total
Special 3-year pre-retirement catch-up: $49,000 total
OBBBA: income > $150K → catch-up amounts must go to Roth
No 10% early withdrawal penalty (unlike 401k / 403b)
Example
State employee, salary $110,000, contributes $24,500 to 457(b), 22% federal + 5% state rate, 20 years, 7% return:
Annual tax savings: $24,500 × 27% = $6,615
Projected balance at retirement: ~$1,074,000
If separation before age 59½: no 10% penalty, only income tax owed
Same employee with 401(k): would owe $2,450 penalty on early withdrawal
Annual tax savings: $24,500 × 27% = $6,615
Projected balance at retirement: ~$1,074,000
If separation before age 59½: no 10% penalty, only income tax owed
Same employee with 401(k): would owe $2,450 penalty on early withdrawal
Extended
457(b) + 401(k) Dual Contribution Strategy
Model the combined tax savings and growth of maxing out both a 457(b) and a 401(k) simultaneously
Model the power of contributing to both a 457(b) and a 401(k) simultaneously. Both limits are independent β you can max both plans in the same year.
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2026 limit: $24,500 (or $32,500 with catch-up) %
% of salary matched by employer Dual Strategy 20-Year Projection
| Year | 457(b) Balance | 401(k) Balance | Combined Total | Annual Tax Savings |
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Frequently Asked Questions
What is the 2026 contribution limit for a 457(b) plan?
The 2026 standard 457(b) elective deferral limit is $24,500. Participants age 50 or older can make a regular catch-up contribution of $8,000, bringing the total to $32,500. The special 3-year pre-retirement catch-up allows eligible participants to contribute up to $49,000 (double the standard limit) in each of the three years before their normal retirement age.
What is the OBBBA catch-up Roth requirement for high earners?
Under the One Big Beautiful Budget Act (OBBBA), participants with income above $150,000 who make age-50+ catch-up contributions must direct those catch-up amounts into a Roth (after-tax) account rather than a pre-tax account. The standard $24,500 deferral can still be pre-tax. This rule mirrors the SECURE Act 2.0 requirement that already applies to 401(k) plans.
Does a 457(b) plan have a 10% early withdrawal penalty?
No. This is one of the most significant advantages of a 457(b) plan over a 401(k) or 403(b). Withdrawals from a governmental 457(b) plan are not subject to the 10% early withdrawal penalty, regardless of your age. You only owe ordinary income tax on distributions. This makes 457(b) plans especially valuable for early retirees or those who separate from service before age 59Β½.
Can I contribute to both a 457(b) and a 401(k) or 403(b)?
Yes. The 457(b) contribution limit is completely separate from the 401(k) and 403(b) limits. If you have access to both a governmental 457(b) and a 401(k) or 403(b), you can contribute the maximum to each plan independently. In 2026, that means potentially $24,500 to the 457(b) plus $24,500 to a 401(k) or 403(b), for a combined $49,000 in pre-tax deferrals.
Who can contribute to a 457(b) plan?
Governmental 457(b) plans are available to employees of state and local governments, including teachers, police officers, firefighters, and municipal workers. Non-governmental 457(b) plans are available to highly compensated employees of certain non-profit organizations. Unlike governmental plans, non-governmental 457(b) assets remain subject to employer creditors, which adds risk.