How is a 403(b) different from a 457(b)?

The plans are similar in that pre-tax contributions are made on behalf of participants and the account grows tax-deferred until withdrawn. Differences between the plans include different distribution rules and withdrawal requests while under financial distress. 403(b) assets may be withdrawn beginning at age 59-1/2 while 457(b) assets may be withdrawn upon separation of service with MCPS.

Withdrawals requested under financial distress are subject to different rules for eligibility. The 457(b) plan typically has stricter requirements than the 403(b) plan. More.

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