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Retirement savings plans
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457(b) retirement savings plans
Discover how Equitable is committed to helping you achieve a financially confident future with a 457(b) retirement savings plan.
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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.
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.
Tools and resources
Frequently Asked Questions
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.
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.
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.
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
In 2025, the maximum contribution limit on a 457(b) retirement savings plan is $23,500. Learn more.
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.
*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. 10/2026)
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