What is a governmental 457(b), and how can I double-dip with it?

A governmental 457(b) is a deferred-compensation plan for state and local government workers, and it has a rare superpower: its contribution limit is separate from a 401(k) or 403(b). That means if your employer offers both a 457(b) and a 403(b)/401(k), you can contribute the full 2025 limit of $23,500 to each — up to $47,000 in employee deferrals (plus catch-ups). This is the famous 'double-dip.' The 457(b) has another perk: withdrawals after you separate from service aren't subject to the 10% early-withdrawal penalty, even before age 59½, making it flexible for early retirees. It also has a special 'final three years' catch-up before your plan's retirement age. If you work in government and have both plans, maxing both is one of the most powerful tax-deferral moves available. Model the impact at wealthserene.com/tools/retirement-planner.