457 Plan

A 457 Plan (again with the great naming) is basically a 401k or 403b that is targeted to U.S. Government workers and a few flavors of independent contractors, such that they can defer taxable earnings. The same withdrawal timing applies with one key diff in the 457, which is that there is no 10-percent penalty for early withdrawal the way there is with the other plans. So... have that mid-life crisis at 43 and just must have that CV red Porsche? Well, have at it. No early withdrawal penalty. And get the big one... you may have to live in it in your retirement years.