Author Topic: maxing out 457b vs 403b first  (Read 682 times)

mkbe229

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maxing out 457b vs 403b first
« on: December 18, 2017, 03:59:23 PM »
Hey guys,

I'm trying to establish a tax-advantaged savings plan for next year. I work at a state university hospital with access to a 457 as well as 403b. The plan options are exactly the same, through Fidelity or TIAA. Both has VTIAX funds as well as Target date funds, same fees as far as I can tell.

I'm currently 31 and don't plan to work anywhere else before retiring. We have a mandatory retirement account that takes 5% of our pay for a 403B. My employer doubles that to 10% of my pay. Anything else that is contributed goes to voluntary accounts. I can afford to allocate enough to max out one of those and throw a couple grand into the other.

I know the 457 can be dangerous with certain employers going bankrupt and paying creditors. I have no fear with this happening at the hospital to which I'm employed.

MDM

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Re: maxing out 457b vs 403b first
« Reply #1 on: December 18, 2017, 05:50:27 PM »
I know the 457 can be dangerous with certain employers going bankrupt and paying creditors. I have no fear with this happening at the hospital to which I'm employed.
In that case, Investment Order may do the trick.

mkbe229

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Re: maxing out 457b vs 403b first
« Reply #2 on: December 18, 2017, 07:27:16 PM »
Thanks! I've looked through the investment order before and I didn't realize it addressed 457s. Mine will be non-governmental so I'll have to consider the inability to rollover to an IRA vs  the early withdrawal penalty for 403b.