Retirement account types

Quick reference for the major retirement account types available to FRS Special Risk members, including the public safety officer penalty exemption.

Governmental 457(b)

Tax treatment
Pre-tax contributions reduce current taxable income. Withdrawals are taxed as ordinary income.
2026 contribution limits
$24,500 standard. Age 50+ catch-up: $32,500. Final-3-years special catch-up: up to $49,000.
Early withdrawal
No 10% IRS early-withdrawal penalty after separation from service at any age. This is the key advantage over 401(k)/403(b) plans for early retirees.
  • Governmental 457(b) plans are unique in that withdrawals after separation are penalty-free regardless of age.
  • A "final three years" special catch-up allows contributions of up to 2× the standard limit during the three years prior to normal retirement.
  • Roth 457(b) options exist at some employers — contributions are after-tax but qualified withdrawals (including growth) are tax-free.

Roth IRA

Tax treatment
Contributions are after-tax. Qualified withdrawals (including growth) are tax-free.
2026 contribution limits
$7,500 standard. Age 50+ catch-up: $8,600.
Early withdrawal
Contributions can be withdrawn at any time tax- and penalty-free. Earnings withdrawn before age 59½ may be subject to the 10% penalty unless a qualifying exception applies.
  • Contribution eligibility phases out at higher modified adjusted gross income (MAGI) levels.
  • Tax-free growth makes Roth IRAs particularly valuable for long horizons and for hedging against future tax-rate increases.
  • Roth IRAs have no required minimum distributions during the original owner's lifetime.

Traditional IRA

Tax treatment
Contributions may be deductible depending on income and workplace plan coverage. Withdrawals are taxed as ordinary income.
2026 contribution limits
$7,500 standard. Age 50+ catch-up: $8,600.
Early withdrawal
10% IRS early-withdrawal penalty applies to distributions before age 59½ unless a qualifying exception applies (substantially equal periodic payments, first home, qualified higher education, etc.).
  • Required minimum distributions begin at age 73 (rising to 75 for younger cohorts under SECURE 2.0).
  • Deductibility of contributions phases out at higher income if you are also covered by a workplace plan.