What Is Retirement Plan 457? 
A 457 plan is a deferred compensation , non-qualified tax deferred-compensation retirement plan .457 -LRB- b -RRB- plans are used by state and local governments and 501 -LRB- c -RRB- organizations . 457 plans has similarities to defined contribution plans like 401 -LRB- k -RRB- s , but no 10 % penalty for withdrawals before age 59 . 457 plans are predicted on deferring income . 