403(b) vs 457(b) Calculator: How to Use It
The contribution limits are identical. The early withdrawal rules are not. Those rules determine which account you should fill first—and the answer depends almost entirely on when you plan to retire.
What this calculator does
The 403(b) vs 457(b) calculator projects the balance of each account at your planned retirement age based on your contributions, employer match, and assumed investment return. It then shows two things side by side: the projected balance and income from each account, and an early withdrawal cost table comparing what you actually net at ages 55, 57, 59, and 62 if you withdraw from each account.
The calculator also generates a prioritization recommendation based on your retirement age. If you plan to retire before 59.5, it tells you to max the 457(b) first. If you plan to retire at 59.5 or later, it recommends capturing the 403(b) employer match before directing extra dollars to the 457(b). The recommendation reflects real IRS rules, not a rule of thumb.
What each input means
Current age and planned retirement age
These two numbers set the projection horizon. The calculator compounds your contributions over the years between current age and retirement age. Retirement age is also the key variable driving the prioritization recommendation: under 59.5 triggers early-retirement logic (457(b) first), at or above 59.5 triggers standard logic (match first).
Annual 403(b) contribution
Your annual employee deferral to the 403(b), capped at $23,500 in 2026. If you check the age-50 catch-up box, both the 403(b) and 457(b) limits increase by $7,500. The calculator does not let you enter more than the legal limit; it silently caps contributions at the maximum.
Annual 457(b) contribution
Your annual employee deferral to the 457(b), capped at $23,500 in 2026 (same limit, completely separate). The 457(b) column never includes employer contributions in this calculator, because employer matches on 457(b) plans are uncommon in the public school and government context.
Age 50+ catch-up toggle
Checking this box adds $7,500 to both the 403(b) and 457(b) annual limits for the projection. Use it if you're currently 50 or older or will turn 50 before your planned retirement. It applies to both plans simultaneously because both offer the same catch-up under IRS rules.
Annual salary
Used only to calculate the 403(b) employer match in dollar terms. A 3% match on a $75,000 salary is $2,250 per year. The salary does not affect the 457(b) projection because 457(b) plans rarely receive employer contributions.
403(b) employer match (% of salary)
The percentage of your salary your employer contributes to your 403(b). Slide to 0% if your employer offers no match, which is common in public school districts. If your district matches the first 3% of salary, enter 3%. The dollar match is compounded over your years to retirement alongside your own contributions.
Return rate
The assumed annual investment return applied to both accounts identically. Both the 403(b) and 457(b) balances grow at this rate. The default is 7%, which is a common long-run assumption for a diversified stock/bond portfolio. Changing this affects both columns equally, so the relative comparison between them changes only when the employer match amounts differ.
State tax rate
Used in the early withdrawal cost table to calculate your after-tax net from a withdrawal. The calculator combines your state tax rate with a 22% federal rate to show the tax bite. States with no income tax should be set to 0%. This does not affect the balance projections—only the withdrawal table.
Understanding the outputs
The balance cards show each account's projected value at retirement and the estimated monthly income at a 4% withdrawal rate. These are side-by-side, not combined. A third row shows the combined balance and combined monthly income if you max both plans.
The early withdrawal table is the most important output for early retirees. It shows four ages (55, 57, 59, 62) and, at each age, the scaled projected balance at that age, the 10% penalty on the 403(b) withdrawal, the tax on both accounts, and the net dollars you keep. The 457(b) shows zero penalty at every age. Before 59.5, the net columns will diverge significantly—the difference is the cost of using the wrong account.
The recommendation banner at the top of the results updates dynamically based on your retirement age. It explains not just what to do but why, including the specific dollar amount of the annual employer match so you can see what you'd be leaving behind by skipping the 403(b).
The 2026 contribution limits reference box at the bottom confirms the applicable limits, including the combined maximum if you max both plans with and without catch-up contributions.
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Frequently asked questions
What is the contribution limit for 403(b) and 457(b) plans in 2026?
Both plans share a $23,500 employee deferral limit in 2026. Both offer an additional $7,500 catch-up at age 50. The limits are completely separate—you can contribute $23,500 to each in the same year for a combined $47,000, or $62,000 with catch-up contributions. This dual-limit opportunity is one of the most powerful tax-deferral options available to public school teachers and government employees.
Why does the 457(b) show no early withdrawal penalty?
The 457(b) has no 10% IRS early withdrawal penalty after you separate from your employer. The 403(b) imposes a 10% penalty on withdrawals before age 59.5. For a teacher retiring at 57 with $200,000 in a 403(b), the penalty alone is $20,000—before income tax. The same withdrawal from a 457(b) costs nothing extra.
What does the employer match percentage do in the calculator?
The match percentage multiplied by your salary produces the annual employer contribution to your 403(b). A 3% match on a $75,000 salary is $2,250 per year, compounded over your years to retirement. The 457(b) column shows no employer contribution because school districts rarely match 457(b) contributions. This is why capturing the full 403(b) match before directing additional dollars to the 457(b) is usually the right first step.
What does the state tax rate input affect?
The state tax rate affects only the early withdrawal cost table. Combined with the assumed 22% federal rate, it shows your real after-tax net from a withdrawal at each age. If your state has no income tax, set the rate to 0%. The balance projections are not affected by the state tax rate.
Should I contribute to both plans at the same time?
Yes, if you can afford to. The IRS treats both limits as entirely separate. The optimal order for early retirees: first, contribute enough to the 403(b) to capture the full employer match. Then max the 457(b) at $23,500. If you have more to save, return to the 403(b) up to its limit. This order gets you the match money while keeping most of your discretionary savings in the penalty-free account.