Author Topic: 457 catch up  (Read 340 times)

ToughMother

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457 catch up
« on: March 03, 2019, 07:07:54 AM »
Has anyone here who contributes to a 457 (deferred compensation) ever taken advantage of the catch up option? I知 changing jobs next month and will have more income to save. I知 trying to determine if putting the extra into the 457 via catch up has any costs/benefits relative to maxing our the 457 as I usually do and putting the rest into my TIAA 403b account.

No major diffs in expense ratios btwn the two. I値l be 57-58 ish when FIREd.

Any insights into tax dis/advantages in the longer term?

CoffeeR

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Re: 457 catch up
« Reply #1 on: March 03, 2019, 08:18:21 AM »
Has anyone here who contributes to a 457 (deferred compensation) ever taken advantage of the catch up option? I知 changing jobs next month and will have more income to save. I知 trying to determine if putting the extra into the 457 via catch up has any costs/benefits relative to maxing our the 457 as I usually do and putting the rest into my TIAA 403b account.

No major diffs in expense ratios between the two. I値l be 57-58 ish when FIREd.

Any insights into tax dis/advantages in the longer term?
In your case it may not matter. If you max out 403B + 457 with catch you can put more $ into tax advantaged accounts (in your case $25K for the 403B + 38K for the 457), but if you will not max out both accounts and given that your close to 59.5 it may not matter much. In general a governmental 457 is preferable over a 403B since there are less restrictions accessing the money when you leave your job (no age restriction).

I'd like to know what others have to say on this matter. I know of no real advantage (all other things being similar) to the 403B over the 457 if you are 59.5 or older, but I might be wrong.

ToughMother

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Re: 457 catch up
« Reply #2 on: March 03, 2019, 09:02:05 AM »
Thanks @CoffeeR  I posted bc I知 not seeing anything obvious other than the convenience I currently have putting money into my 457 (specific to my current situation). Hope some other 457 gurus weigh in. Thanks!