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You can take penalty-free withdrawals from your 457 account at any age after you leave your job. Most other types of retirement-savings plans assess a 10% penalty if you withdraw money before age 55 or 59½, depending on when you leave your job.

The 457 plan is a retirement savings plan and you generally cannot withdraw money while you are still employed. When you leave employment, you may withdraw funds; leave them in place; transfer them to a 457, 403(b) or 401(k) of a new employer; or roll them into an Individual Retirement Account (IRA).

You can withdraw funds from your 457(b) plan penalty-free at any age once you leave your employer or retire. You won't owe an early withdrawal penalty even if you are not yet 59 ½, but you will pay federal and state income taxes on the withdrawal.

Advantages & Disadvantages of 457(b) and 457(k) Plans ProsConsTaxes on your contributions, interest and dividends are deferred until you withdraw money.The maximum annual limit for contributions is $45,000 (including all catch-up contributions); far below the limit for total 401(k) contributions.3 more rows • Sep 14, 2020

You can take penalty-free withdrawals from your 457 account at any age after you leave your job. Most other types of retirement-savings plans assess a 10% penalty if you withdraw money before age 55 or 59½, depending on when you leave your job.

Earnings accumulate on a tax-deferred basis, and distributions are tax-free if made five years after the initial contribution to the plan and the employee is over 59½.

Earnings accumulate on a tax-deferred basis, and distributions are tax-free if made five years after the initial contribution to the plan and the employee is over 59½.

Transfer to your new employer's plan If your new employer offers a 403(b) or 457 plan, you may be able to transfer your old plan's funds to your new plan. Check with your new plan's administrator for details. If you have more than one retirement plan from changing jobs and employers, be sure not to lose track of them.