Prepare for a comfortable retirement with a 457(b) plan

A 457(b) plan is a retirement savings plan designed specifically for employees of state and local governments, as well as certain nonprofit organizations. It operates similarly to a 401(k) or 403(b) plan*, providing a tax-advantaged way for employees to save for their retirement. 457(b) plans also have unique features that offer more flexibility, making them an excellent option for public service employees.

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Equitable's commitment to employees in the public sector

We know public service employees have unique needs. You spend your time making our communities better every day. We want to help you make your retirement better, too.

  • We’ve designed our 457(b) plan to meet the specific needs of public service professionals.
  • This tailored approach is one reason why Equitable is a top choice for many other public service employees across the country.1
  • For over 165 years, Equitable has offered plans that fit the unique needs of public sector employees, earning their trust over time.2

Benefits of a 457(b) plan

A 457(b) retirement savings plan offers tax-deferred growth on retirement savings, flexible withdrawal options and potential employer contributions, making it an attractive option for public sector and nonprofit employees.
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Pre-tax contributions
Contributions are made with pre-tax dollars, which can lower your taxable income, potentially lowering your tax bracket and therefore, what you may owe.
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Compounding interest
The interest earned in a 457(b) account is reinvested to earn additional interest over time, which can lead to potentially exponential growth.
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Tax deferred investment earnings
Earnings on your investments grow tax-deferred until you withdraw them in retirement.
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Flexible withdrawals
Unlike other plans, you can withdraw funds before age 59½ without the usual penalties.
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Flexibility in investment options
Choose from a variety of investment options that suit your risk tolerance and retirement goals.
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Bonus contributions
Within 3 years of normal retirement age, you can make additional contributions to boost your retirement savings.
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Pensions and 457(b) plans work together

One of the advantages of working in the public sector is knowing you will have a pension, which can help cover basic retirement expenses like housing and healthcare. A 457(b) plan, which is similar to a 401(k), can supplement your pension and provide extra income to enjoy the kind of retirement you want and deserve.

Tools and resources

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Retirement calculator

Try the retirement calculator to see if you’re saving enough for the retirement you envision.

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Insights and inspiration for 457(b) clients

Equitable Perspectives offers timely financial news, tips, stories and advice.

Frequently Asked Questions

  • Why work with a financial professional?
    Working with an Equitable Advisors Financial Professional can make planning for retirement easier.3 They can assist you with creating a plan for saving and investing that meets your goals and evolves with your needs, regardless of where you are in the wealth management process.
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    Higher savings balance
    23% higher savings balance for people who work with a financial professional versus those who don't
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    Confidence meeting goals
    78% versus 60% feel confident about meeting their retirement goals (with a financial professional versus without a financial professional)
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    Overall satisfaction
    84% versus 59% expressed a higher overall satisfaction with the performance of their retirement savings plan
  • What is the benefit of pre-tax contribution?

    Pre-tax contributions are deducted from your gross income, reducing your taxable income for the year, and potentially lowering your tax bracket. Your earnings grow tax-deferred until you withdraw the money. For example, if your annual salary is $50,000 before taxes and you contribute 5%, or $2,500, to your 457(b) plan, you will only pay taxes on $47,500. As you increase your contributions, you’ll reduce your tax bill even more.

    $50,000 annual pre-tax income; $600 more in your pocket

  • How does compounding interest benefit my savings?

    Thanks to the power of compound interest, every dollar you invest has the potential to grow. That’s because when you have money invested, it earns interest. Eventually, your interest can earn interest. This is known as compound interest.

    the power of compounding and payroll contributions ($150/pay period)

    By putting $150 in pre-tax dollars per pay period into y our 457(b) plan, your savings could grow to $331,685 in 30 years.5

     

  • Is there a limit to what I can contribute to my 457(b) plan?

    In 2025, the maximum contribution limit on a 457(b) retirement savings plan is $23,500. Learn more.

  • How do required minimum distributions (RMDs) work?
    An RMD is a mandatory withdrawal that individuals must take from their retirement accounts, such as traditional IRAs, 403(b)s and other tax-deferred retirement plans, starting at age 73 (or 70½ if you reached that age before January 1, 2020). Understanding RMDs is crucial for effective retirement planning and tax management. Learn more. 

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Investing in an Equitable 457(b) plan is not just a smart financial decision: it's an investment in your future peace of mind. With Equitable's proven track record and commitment to public service employees, you can trust that your retirement savings are in good hands.

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*A 457(b) plan is a retirement plan available specifically to public sector employees. By comparison for context, a 401(k) plan is a qualified plan available specifically to employees of for-profit companies. While they have similarities, 457(b) plans and 401(k) plans are not interchangeable or entirely comparable.

1 LIMRA, Not-for-Profit Survey, Q2 2024 results, based on 403(b) plan participants and contributions. Survey results include Equitable Financial Life Insurance Company (Equitable Financial) and Equitable Financial Life Insurance Company of America (Equitable America) issued plans.

2 This applies specifically and exclusively to Equitable Financial Life Insurance Company (Equitable Financial).

3 Equitable Value of the Advisor Study, 2022. Independent research conducted by Zeldis Research Associates, and commissioned by Equitable, highlights the financial benefits K–12 educators can gain by working with a financial professional with respect to their 403(b) account. These responses reflect anonymous individual opinions from the survey and are not intended as predictions of any product/investment performance, may not represent the experience of any other plan participant, and should not be relied upon as basis for any purchase decision. Equitable Financial Life Insurance Company (Equitable Financial) and its affiliates do not guarantee the accuracy or applicability of the information included in these responses. These responses were collected by Zeldis Research, a third-party vendor not affiliated with Equitable Financial or its affiliates.

4 Based on 2023 federal tax tables, assuming married filing jointly (source: irs.gov). Figures do not take into account any other sources of income, state or local income taxes, tax credits or deductions. Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with an administrative office located in Charlotte, NC; and Equitable Distributors, LLC. The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities.

5 This assumes a hypothetical 7.5% return and there are no withdrawals. Withdrawals are subject to ordinary income tax and, if made before age 59½, may be subject to an additional 10% federal income tax. This example is for illustrative purposes only and is not intended to represent an expected or guaranteed rate of return for any investment vehicle. This example does not take potential taxes, investment management fees or product-related charges into account. Your rate of return will vary. Amounts are fully taxable upon withdrawal and the accumulation values illustrated will be reduced, based on an individual’s tax rate.

GE-7197090.1 (10/2024) (Exp. 10/2028)