457 Plan
Also called: 457(b), deferred compensation plan for government workers
A 457(b) is a deferred compensation plan for state and local government employees, and it has one standout advantage: no 10% early withdrawal penalty once you leave the employer, whatever your age. Someone retiring at 52 can draw on it immediately while their 401(k) stays locked. Employees offered both a 457 and a 403(b) can generally contribute the full limit to each, effectively doubling their sheltered space.