AL-49 ยท Compensation & Benefits

Deferred Comp 457(b)
Decision Engine

Should you maximize your 457(b) or take the paycheck? Models the after-tax value of deferral vs. investing the same dollars in a taxable account โ€” accounting for current vs. retirement marginal rates, growth horizon, and RMDs.

๐Ÿ“Š Very low โ€” IRC ยง457 logic is stable. Contribution limit ($24,500 for 2026) is embedded; verify against IRS Notice each January. All marginal rate inputs are user-supplied.
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Your Situation ยง457(b)
Gross salary before any deferrals
2026 limit: $24,500 (age 50+ catch-up: +$8,000; ages 60โ€“63: +$11,250; special 3-yr catch-up: double limit)
Federal + state (e.g., 24% fed + 5% state = 29)
Rate at withdrawal โ€” often lower, but not always
Growth & Withdrawal Projections
Same rate applied to both scenarios
How long retirement withdrawals span
Net of dividend drag (typically ~0.5โ€“1% below gross)
Federal LTCG rate (0%, 15%, or 20%)
Scenario Comparison Side-by-Side
Key Metrics
Growth Projection Both Scenarios
Full Breakdown
Interpretation & Caveats