Author Topic: 457b vs IRA  (Read 166 times)

JSMustachian

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457b vs IRA
« on: August 09, 2017, 09:47:45 AM »
Hello everyone,

My main question is should my wife contribute to her 457b plan instead of a Roth IRA?

Our combined income is too high to get the deduction for a traditional IRA ($130,000). We both currently max out each of our 403b's and IRA's. If I am reading correct, a 457b plan will allow me to withdraw the money before the typical age requirements of an IRA or 403b (59 1/2). This would be an attractive option if we are able to retire at 50 like we are planning.

I don't think we will be able to max out the 403b, IRA's and a 457b so I am considering not contributing to her Roth IRA to get the deduction of the 457b. Does this sound like a good plan or should I forget the 457b and continue to contribute to her IRA?

Thank you