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Both let you save for retirement through payroll deductions with tax advantages. A 403(b) is offered by public schools and certain nonprofits; a 457(b) is a deferred-compensation plan offered by state and local government employers, including many school districts. The biggest practical difference: money in a governmental 457(b) can be withdrawn after you leave that job without the 10% early-withdrawal penalty, at any age. Most 403(b) withdrawals before age 59½ carry that penalty.

You choose an amount to set aside from each paycheck, and it goes into investments you pick from the plan’s options. With traditional (pre-tax) contributions you lower your taxable income now and pay tax when you withdraw in retirement. If your plan offers a Roth option, you pay tax now and qualified withdrawals in retirement are tax-free.

No. A 403(b) is an employer plan funded through payroll; an IRA is an account you open on your own. They have separate contribution limits, so you can contribute to both. Some 403(b) plans also offer a Roth 403(b) option, which works like a Roth IRA for taxes but follows the 403(b) plan’s rules.

Usually only in limited cases, and it depends on your plan. Common options are loans, hardship withdrawals for a 403(b), unforeseeable-emergency withdrawals for a 457(b), or in-service withdrawals once you reach age 59½. Early 403(b) withdrawals can also mean income tax plus a 10% penalty, so it’s worth checking your options with Rudy first.

No. Your pension pays a defined monthly benefit based on your salary and years of service. A 403(b) or 457(b) is a separate savings account you fund yourself; what you have at retirement depends on how much you contribute and how the investments perform. Many educators use one to help close the gap between their pension and the income they want in retirement.

Yes, if your employer offers both. The 403(b) and 457(b) have separate annual contribution limits, so educators with access to both can save up to twice as much as with one plan alone. Rudy can help you decide how to split contributions between them.