457(b) Withdrawal Calculator

The 457(b) is unique: no 10% penalty for withdrawals before 59½ once you separate from service. That makes it the ideal bridge account for early retirees — and this calculator shows how long it can carry you.

The early-retirement bridge

Police officers, firefighters, and other government employees often retire in their 50s with a pension that starts immediately, but Social Security is a decade away. A governmental 457(b) fills that decade: because there is no early-withdrawal penalty after separation, you can draw it at 52 or 55 without the 72(t) gymnastics an IRA would require. The default example above — $250,000 funding $2,500 a month from age 55 — is exactly that use case. Run it with your own pension gap.

One important distinction: governmental 457(b)s can be rolled to an IRA and enjoy the protections above. Non-governmental (tax-exempt employer) 457(b)s cannot be rolled to an IRA, remain the employer's asset until paid, and usually must be distributed on a fixed schedule chosen at separation. If you have one of those, the "how long will it last" question is partly answered by the plan's payout schedule.

How the calculator works

Each month the balance earns one month of return, then the withdrawal is taken out. Every 12 months the withdrawal is increased by the inflation rate so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.

The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.

457(b) rules at a glance

• No 10% penalty on distributions after separation from service at any age (governmental plans).
• RMDs apply from age 73, the same as 401(k)s.
• Roth 457(b) options exist in many governmental plans; qualified withdrawals are tax-free.
• Special 3-year catch-up allowed contributions of up to double the normal limit in the three years before normal retirement age — relevant to the balance you arrive with.
• Tax. Distributions are ordinary income; several states exempt some or all government retirement income.

Choosing realistic inputs

• Annual return. 4–5% is a conservative planning number for a balanced portfolio; 6–7% is closer to long-run history for 60/40; cash and CDs are 3–5% today but fall when rates fall.
• Inflation. The Federal Reserve targets 2%; the 30-year U.S. average is about 2.5%. Healthcare inflation runs higher, so retirees with large medical costs should test 3–3.5%.
• Withdrawal. Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover.

SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.