457(b) vs 401(k): What's the Difference?
Both plans can help you save through payroll, but a 457(b) generally has more flexible early distribution treatment while a 401(k) commonly offers employer matching. Your plan document determines the details.
Side-by-side comparison
| Feature | 457(b) | 401(k) |
|---|---|---|
| Typical employers | Government and some nonprofits | Private and public employers |
| 2026 elective deferral limit | $24,500 | $24,500 |
| 10% early distribution tax | Generally does not apply | May apply before 59½ |
| Employer match | Plan-specific | Common but plan-specific |
Which one is better?
The answer depends on match, fees, investment choices, job stability, withdrawal timing, and whether the plan is governmental or nongovernmental. A 457(b)'s early-access advantage can matter for someone leaving work before 59½.
Frequently asked questions
Can I contribute to both a 457(b) and a 401(k)?
In some circumstances, yes, and separate deferral limits may apply. Confirm coordination rules for your plans.
Does a 457(b) always beat a 401(k)?
No. A 401(k) match, lower fees, or better investment menu can outweigh the 457(b) early-access advantage.
Sources
Gleefund explains general retirement-account concepts and provides estimates. It does not provide financial, tax, or legal advice. See our disclaimer and methodology. Check the current IRS rules before acting.
Figures current as of 2026-09-25. Found an error? Contact us.