Could a Roth 457(b) fit in your future?

Your employer’s retirement plan could be one of your most valuable benefits.

Looking to boost your retirement nest egg or reduce your taxable income during retirement? Contributions to a Roth account provided through your governmental employer’s 457(b) plan may be an option to consider. A Roth 457(b) account permits you to:

  • Contribute after-tax dollars.
  • Take tax-free distributions if the following conditions are met:
    • If withdrawn after the end of the five-year period beginning with the first year for which a Roth contribution was made to the plan; and
      • You turn age 59½, or
      • Your total disability or death
  • Reduce taxable income during retirement and possibly help reduce taxation of Social Security benefits under current law.

Check out this year’s contribution limits.

Roth 457(b) basic features

  • You must be eligible to participate in your employer’s 457(b) plan, and your Roth account contributions must satisfy all applicable requirements.
  • Roth account balances are portable to other plans that offer a Roth account or a Roth IRA, if the receiving plan accepts such rollovers.
  • Roth 457(b) accounts are subject to Required Minimum Distribution rules. Rolling a Roth account into a Roth IRA prior to age 73 (age 70½ if born before July 1, 1949) might avoid this requirement.

Distributions and rollovers

Because Roth account contributions are treated as elective contributions, a distribution can be made at severance of employment, death or retirement. A distribution may be made for an unforeseeable emergency but only if permitted by the plan. However, tax-free treatment is only provided to qualified distributions. A qualified distribution is one that is made after:

The end of the five-year period beginning with the first year for which a Roth contribution was made to the plan (known as the five-year aging rule or five-year clock) and you reach age 59½, or become disabled or die. In addition, income taxes are payable on nonqualifying withdrawals from Roth account earnings. Federal restrictions may apply. 

Is a Roth 457(b) account right for you?

In determining if a Roth 457(b) account is right for you, we encourage you to carefully assess the advantages and disadvantages. A Roth 457(b) may appeal to those who:

  • Cannot contribute to a Roth IRA due to income limits.
  • Are young and in lower income tax brackets than they expect to be in retirement.
  • Are financially stable, but expect tax rate increases are likely.
  • Want tax diversity and flexibility in retirement.

Treatment of retirement savings vehicles


Traditional 457(b) Salary Deferral

Roth 457(b) Contribution

Roth IRA

Contribution taxable in year contributed




Contribution taxable in year distributed




Earnings on contributions taxable in year distributed




No, if distribution is made after age 59½, death or disability, and, for Roth IRA, for first home purchase ($10,000 limit). All distributions must be after the end of the five-year period* beginning with the first year for which a Roth contribution was made to the plan.

Eligible for rollover to non-Roth or traditional qualified plan, traditional IRA, 403(b), 401(k) or governmental 457(b)







Eligible for direct rollover to other Roth accounts or to Roth IRA



Yes, but only to Roth IRA

Contributions limited by IRC 457(e) salary deferral limits, plus age 50 catch-up limit or special catch-up, where applicable


Yes (Roth and salary deferral combined for this limit)

No. Regular IRA limit applies and is not affected by Roth 457(b) contributions

Contribution eligibility subject to Adjusted Gross Income Limits




* The Roth 457(b) account and a Roth IRA have separate and distinct five-year aging periods (or clocks).

Corebridge: Moving financial futures forward 

At Corebridge Financial, we believe everyone deserves financial security. We're helping people take action toward their future goals with our broad suite of retirement solutions and insurance products. Every day, we work hard to make it possible for more people to take action in their financial lives—because action is the bridge from planning to outcomes, from today’s financial needs to tomorrow’s aspirations.  If the Roth 457(b) account features could suit your financial situation, schedule a meeting with your financial professional to discuss this opportunity.


Important considerations before deciding to move funds either into or out of a Corebridge retirement services account. There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations.

This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional. 

Securities and investment advisory services offered through VALIC Financial Advisors, Inc., member FINRA, SIPC and an SEC-registered investment adviser. Annuities are issued by The Variable Annuity Life Insurance Company, Houston, TX. Variable annuities are distributed by Corebridge Capital Services, Inc., member FINRA.  All companies above are wholly owned subsidiaries of Corebridge Financial, Inc. Corebridge Retirement Services, Corebridge Financial and Corebridge are marketing names used by these companies.