Deferred Compensation Plan
A 457(b) is a tax-advantaged retirement plan offered primarily by state and local government employers, commonly used by police officers, firefighters, and other public sector employees.
Unlike a 401(k) or 403(b), a governmental 457(b) has no early withdrawal penalty once an employee separates from service, regardless of age — though ordinary income tax still applies to withdrawals.
It's a retirement account for government and public safety workers that you can actually access penalty-free once you leave the job — no waiting until 59½ like most other retirement accounts.
The rollover trap to avoid, and the catch-up contribution unique to this plan.