A 403(b) Plan is offered through insurance companies.

A 457(b) Plan is offered through New York State and is for State workers. With a 457(b) plan, you can withdraw the money you saved in this account without a penalty at any age but you do have to pay income taxes at that point.

Also, you may have to pay more for an independent agent to administer a 403(b) plan, and a 457(b) plan is a state plan.

These plans are optional but both are great saving tools for retirement because the money deducted from your pay and put in these accounts are pre-tax, so they lower your taxable income. The money is only taxed when it is taken out of the account and by that time, you should be in a lower tax bracket (in retirement).