← All account types
RMD required
457(b) Plan
A 457(b) is a deferred compensation plan for state and local government employees and employees of certain tax-exempt organizations. It allows pre-tax or Roth contributions from salary.
Who might have one?
- State and municipal government employees
- Police, fire, and public safety workers
- City and county staff with government pension systems
- Employees of some tax-exempt organizations
Why would you have one?
- Supplement a public-sector pension
- Save beyond pension contributions on a tax-deferred basis
- Reduce current taxable income through payroll deferral
- Prepare for retirement if your pension alone may not cover expenses
How RMDs work for this account
457(b) plans are subject to RMD rules similar to other employer plans. Each 457(b) account's RMD must be calculated and withdrawn separately. Special rules may apply to distributions after separation from service.
Common mistakes
- Assuming pension income eliminates the need for 457(b) RMDs
- Not coordinating 457(b) withdrawals with other retirement income
- Missing RMDs on a 457(b) while still holding a government job at a different agency
Frequently asked questions
- Are 457(b) plans subject to RMDs?
- Yes. Like 401(k) and 403(b) plans, 457(b) accounts require minimum distributions once you reach your required beginning date, calculated per account.
Related account types
Need help with your RMD?
Get a free review of your required minimum distribution strategy with a qualified advisor.