I get it too (p0420)
from time to time. I clear it goes away for 1-2K miles. I know what's causing mine. Like TheDurk said, exhaust leak at one of the flanges near the front. My otherwise good mechanic replaced my cats and didn't re-use the flanges, put the ones that came with the aftermarket cat. So now after taking it back 6 times (each about 3-5 months apart) its doing it again, minor leak, i can hear it and so does the puter. I took it to an exhaust shop, they said take it back to mechanic, he messed up with aftermarket flange, they one he used just won't work they said, will do it over and over. Its a hastle to take it to mechanic, have to drop it, get a ride to work and vice versa. I almost am ready to find the leak myself and just lather it with jb weld. thoughts? how much worse could that make it?
Ok now to try to help with your issue. The 0420 code is saying there is not enough of a difference between the readings taken from the front and the rear 02 sensors. Meaning either the cat is inefficient, 1 or both sensors are bad (not likely), a leak towards the front of the front sensor (making it so its reading is off). So go from the cheapest to more expensive solutions. When the code trips on mine, it does not affect fuel efficiency. But I do not like how toyota then turns the safety features off (to save the engine some power if needed), plus of course the cel light, errrrr....
Here is some info I found on the code that may help with technical diagnosis (some mentioned already but wanted you to see the whole thing:
P0420 Catalyst System Efficiency Below Threshold (Bank 1)
HO2 sensor after the catalytic converter is not responding normally.
1. Check for leaks in the exhaust system between the engine and the cat converter (loose connection, rusted area, or burned out seal)
2. HO2 or A/F ratio sensor before cat converter is bad (remove connector and measure resistance between terminals +B and HT - should be 0.8-1.4 ohms cold).
3. HO2 sensor after cat converter is bad (measure resistance as above - should be 11-16 ohms cold).
4. Cat converter is bad.
If you need to replace a sensor, bring your VIN to a Toyota dealer and get the correct part number for your engine. There is only one that works correctly, but at least two available. You don't have to buy the part from Toyota, but you have to have the correct part number.
Good luck!