Hi, all.
Preface: I've read through most of the threads that relate to 457b accounts, but I want to post my situation here for advice.
Stats:
Me: 34 years old, $49,500 annual salary
Husband: 34 years old, $127,500 annual salary (excluding bonuses)
Due to delayed entry into the work force (PhDs; he finished, I quit), my husband began saving for retirement at 31 and I began at 32. (Panic!) I just hit $30k in my combined accounts and he has approximately 35-40k in his 401(k).
I work in the UC system in California, which means that I have access to the following retirement vehicles:
1. UCRP Savings Plan (mandatory 7% employee / 8% employer contribution)
2. 403b (I currently contribute $1,375/month, but this was not my starting rate)
3. 457b
457b info here:
https://ucnet.universityofcalifornia.edu/forms/pdf/457b-deferred-compensation-plan.pdf Because I was such a noob, I first thought that the 403b and 457b were mutually exclusive. Only recently did I realize the error of my ways, and want to start contributing to the 457b. Fortunately, I've only lost 1.5 years of investment time.
Questions:
1. I assume that my 457b is governmental, but what is the best way to verify that?
2. Should I specifically look for language in the documentation that the account is "held in trust for the employee"?
3. The administrative fee is currently $8.75/quarter. Only one fee is applied to all accounts, so I will not be paying any additional fees for opening the 457b. There is still an expense ratio, which varies from option to option. How important is the expense ratio in choosing a fund?
4. Would it be better to max out the 457b first and then the 403? (My husband and I have talked about maxing out both my accounts to decrease our tax liability, but haven't fully decided yet.)
Are there any other issues or concerns that I may be overlooking?
Thanks all for any guidance you can provide!