457 Plan Calculator
Calculate how your 457(b) deferred compensation plan will grow over time. Enter your contributions, employer match, investment return, and years until retirement to project your account balance and retirement income.
A 457(b) deferred compensation plan is the retirement plan most state and local government employees use (along with some 501(c) nonprofit workers). It works similarly to a 401(k) — pre-tax contributions, tax-deferred growth, taxed on withdrawal — but with two important advantages that make it particularly powerful for late-career savers and early retirees.
First, 457(b) plans uniquely have NO 10% early-withdrawal penalty. Withdrawals before age 59½ are fully accessible without the penalty that hits 401(k) and IRA early distributions. You only owe ordinary income tax. This makes a 457(b) the single most flexible retirement vehicle in the U.S. tax code for anyone who might retire before traditional retirement age — it bridges the gap to 59½ without requiring SEPP/72(t) structures or other workarounds.
Second, 457(b) plans offer a "special catch-up" provision in addition to the standard age-50 catch-up: in the three years before normal retirement age (as defined by the plan), participants can contribute up to double the standard limit ($47,000 for 2025) if they haven't maxed out in prior years. This can dramatically boost savings in the final years of a career.
This calculator projects your 457(b) balance using current balance, contributions, expected returns, and years to retirement. For dual-eligible employees (some workers can contribute to both a 457(b) AND a 401(k)/403(b)), the combination allows extraordinarily high tax-deferred saving — up to $47,000+ per year between the two plans for non-catch-up workers.
Inputs
Percentage of salary matched
Results
Projected Balance
$2,010,061
Total Contributions
$450,000
Employer Match
$67,500
Monthly Retirement Income
$6,700
Account Balance Growth
Annual Contributions vs Growth
Year-by-Year Growth
| Age | Contribution | Employer Match | Growth | Balance |
|---|---|---|---|---|
| 36 | $15,000.00 | $2,250.00 | $3,500.00 | $70,750.00 |
| 37 | $15,000.00 | $2,250.00 | $4,952.50 | $92,952.50 |
| 38 | $15,000.00 | $2,250.00 | $6,506.68 | $116,709.18 |
| 39 | $15,000.00 | $2,250.00 | $8,169.64 | $142,128.82 |
| 40 | $15,000.00 | $2,250.00 | $9,949.02 | $169,327.83 |
| 41 | $15,000.00 | $2,250.00 | $11,852.95 | $198,430.78 |
| 42 | $15,000.00 | $2,250.00 | $13,890.15 | $229,570.94 |
| 43 | $15,000.00 | $2,250.00 | $16,069.97 | $262,890.90 |
| 44 | $15,000.00 | $2,250.00 | $18,402.36 | $298,543.27 |
| 45 | $15,000.00 | $2,250.00 | $20,898.03 | $336,691.30 |
| 46 | $15,000.00 | $2,250.00 | $23,568.39 | $377,509.69 |
| 47 | $15,000.00 | $2,250.00 | $26,425.68 | $421,185.36 |
Formula
How to use this calculator
- Enter your current 457(b) balance. If you have multiple 457(b)s from different employers, combine for the total.
- Enter your annual contribution amount. The 2025 limit is $23,500 (same as 401(k)), with $7,500 catch-up for ages 50+ in plans that allow it.
- Enter your employer match if applicable. Most state and local government 457(b) plans do NOT have a match — the pension benefit is typically the employer-provided retirement compensation. Some nonprofit 457(b)s do match.
- Enter your annual salary.
- Set the expected annual return. 6–8% for diversified equity allocations; 4–6% for moderate; 3–4% for conservative.
- Enter current age and target retirement age.
- Check the special catch-up if you're within 3 years of your plan's normal retirement age AND haven't historically maxed out the contribution limit. This can allow up to double the standard contribution limit.
- Review the projected balance at retirement.
- Special case: if you're eligible for both a 457(b) AND a 401(k)/403(b) (common for public university employees, some hospital workers, certain ministers), you can contribute the FULL limit to each — combined $47,000/year tax-deferred. This is one of the most powerful tax-deferred savings opportunities in the U.S. tax code.
Worked examples
State employee, no match (typical)
Age 32, $40,000 balance, contributing $12,000/year, no employer match, 7% return, retire at 62. Years to retirement: 30. Annual contribution: $12,000. FV = 40,000 × 1.07^30 + 12,000 × [(1.07^30 − 1)/0.07] ≈ 304,500 + 1,133,500 ≈ $1,438,000 Plus the pension benefit (separate). Typical state employee with 30 years of service and good 457(b) saving builds a multi-million-dollar combined retirement asset.
Pre-retirement special catch-up
Age 60, $400,000 balance, normal retirement age 63 (3 years away). Historical contributions averaged $15,000/year; eligible for special catch-up because limits not historically maxed. Special catch-up allows up to $47,000/year for 3 years (2025 limit doubled). If contributing $47,000 each year for 3 years at 7% return, plus existing balance: Year 3 balance: 400,000 × 1.07^3 + 47,000 × [(1.07^3 − 1)/0.07] = 489,800 + 151,000 = $640,800 The 3-year catch-up window adds about $150,000+ vs. continuing at the lower historical rate. Particularly valuable for late-career savers who got serious about retirement only in their 50s.
Dual-eligible employee maximizing both plans
Public university professor, age 45, eligible for both a 457(b) and a 403(b). Salary: $120,000. Contributing to both at the maximum. Annual contributions: 403(b): $23,500 457(b): $23,500 Total tax-deferred: $47,000 per year Over 20 years at 7% return, the combined balance reaches: FV (annual): $23,500 × 2 × [(1.07^20 − 1)/0.07] = $47,000 × 40.995 ≈ $1,927,000 The dual-eligibility doubles the tax-advantaged savings opportunity. With the age-50 catch-ups in both plans starting at age 50, the combined limit goes even higher.
When to use this calculator
Use this calculator if you're a state or local government employee, public school teacher, public hospital employee, or eligible nonprofit worker. The 457(b) is the standard retirement plan for these roles and is one of the more advantageous retirement vehicles in U.S. tax code due to the lack of early-withdrawal penalty.
For early retirees specifically, the 457(b) is uniquely powerful: you can retire at 50 (or 45, or 40) and immediately draw from your 457(b) balance without the 10% early-withdrawal penalty. The penalty avoidance can save 10% of every withdrawn dollar compared to early 401(k)/IRA withdrawals.
Pair this with the 401(k), 403(b), and IRA calculators (for dual-eligible workers and for comparing across plan types), the pension calculator (since most 457(b)-eligible workers also have a pension), the FIRE calculator (early retirement modeling — 457(b) is the gold-standard FIRE bridge vehicle), and the retirement-savings calculator (whole-portfolio view).
A critical distinction worth knowing: there are two types of 457(b) plans — "governmental" 457(b)s (state/local government employees) and "non-governmental" 457(b)s (some non-profit employees). Governmental 457(b)s are fully separate from the employer's assets (held in a trust for participant benefit) and can be rolled to IRAs after employment. Non-governmental 457(b)s are subject to the employer's general creditors and cannot be rolled to IRAs — distributions are typically taken from the plan itself. This is a meaningful difference for employees whose employer's solvency might be in question (some hospitals and nonprofits).
For dual-eligible workers (both 457(b) AND 401(k)/403(b)), maxing both plans is one of the highest-leverage moves in personal finance. The combined $47,000/year tax-deferred contribution opportunity, compounded over 30+ years, can build $4M+ in retirement assets — easily clearing most retirement income needs even before pension and Social Security.
Common mistakes to avoid
- Confusing 457(b) with 401(k) early-withdrawal rules. The 457(b) has NO 10% early-withdrawal penalty — withdrawals are subject only to ordinary income tax. This is one of its most valuable features. Don't assume the same restrictions as 401(k)/IRA apply.
- Missing the dual-eligibility opportunity. Workers eligible for both a 457(b) and a 401(k)/403(b) can contribute the FULL limit to each plan separately ($23,500 × 2 = $47,000 in 2025). The plans don't share a combined limit. Many eligible workers don't realize this.
- Not using the special 3-year catch-up. Pre-retirement workers within 3 years of their plan's normal retirement age can contribute up to double the standard limit if they haven't maxed out historically. Few participants take advantage.
- Treating a non-governmental 457(b) as fully safe. Non-governmental 457(b)s are subject to employer's general creditors. If the employer goes bankrupt, the assets can be claimed by creditors. Governmental 457(b)s are held in a separate trust and protected.
- Forgetting that non-governmental 457(b)s can't roll to an IRA. After leaving the employer, you must either leave the money in the plan, take distributions, or transfer to another non-governmental 457(b) (if you find a new eligible employer). Governmental 457(b)s have full rollover flexibility.
- Ignoring the pension trade-off. Most government 457(b) participants also have a defined-benefit pension. The pension is the primary retirement asset; the 457(b) is supplemental. Don't over-weight the 457(b) projection without factoring in pension income.
Frequently Asked Questions
Sources & further reading
- 457(b) Plans — IRS overview — U.S. Internal Revenue Service
- Publication 4484 — 457 Plans for State and Local Governments — U.S. Internal Revenue Service
- Retirement Topics — 457(b) Contribution Limits — U.S. Internal Revenue Service