Author Topic: 403b and 457 in one spouses name?  (Read 342 times)

Be_Marie

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403b and 457 in one spouses name?
« on: October 25, 2018, 08:06:55 AM »
Hello Mustachians-

I've been a reading the forum for about a year now but have never posted a question because I've always been able to find the answers to my questions in previously posted threads. I am very grateful to this kind and helpful community! I didn't find an answer in this instance but if I overlooked it, I'd be grateful if you directed me appropriately.

My husband and I both have government jobs with defined benefit pension plans (through two different pension systems). I recently finished graduate school so we are just now beginning the process of increasing our retirement savings above the mandatory contributions to our respective pensions.

Through my work, I have a 403b with the option of also opening a 457, both through Fidelity. My husband's work offers 457s through CalPERS, MassMutual, and Prudential. All of our research thus far (still waiting on a few responses) makes it seem like his investment selections are less appealing than Fidelity's and significantly more expensive. Since we don't get the benefit of a company match to these accounts and his investment options are less appealing, we're considering opening the 457 through my employer instead of his. Before we make this decision, I'd love to know what factors beyond investment options and cost should be considered. Is there an inherent risk for him in having both of these accounts in my name?

Though I have no intention of leaving this job, I have confirmed with HR and Fidelity that if I leave both accounts are eligible to be rolled over. We're both in professions we're quite passionate about so we don't plan to retire for at least 20 years but we're attempting to live as mustachian as possible. We've been married ten years, all of our finances are shared.

Thank you!


terran

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Re: 403b and 457 in one spouses name?
« Reply #1 on: October 25, 2018, 09:25:21 AM »
I suppose there is some small risk to him in that they are your accounts and you own them, but I would think any halfway decent divorce attorney would make sure he gets half of them just like you'd split any other marital assets.

Full_Beard

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Re: 403b and 457 in one spouses name?
« Reply #2 on: October 25, 2018, 12:47:42 PM »
I can't think of any downside other than the divorce quagmire.

I am surprised the tax laws allow one to contribute both to a 403(b) (or 401(k)) and a 457, but since the early 2000's, they do. If financially feasible down the road, you could do all three: husband contributes to 457, and you contribute to both 403(b) and 457.

Be_Marie

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Re: 403b and 457 in one spouses name?
« Reply #3 on: October 25, 2018, 10:34:06 PM »
Thank you for your responses, Full-Beard and terran!