What to Pair with a 457?

[ruraljuror]

Well, Nationwide sucks at providing my employer (local government agency) with an additional account on top of our 457b deferred compensation account.  They are telling me that the 401a is not an option b/c I prefer that only employee contributions be included in the 401a rather than agency contributions.  It appears that a 414h account is too onerous to implement.  Anyone know of other accounts that a local government agency (not academic institution) can pair with a 457b to allow me to contribute more to a tax advantaged account? 

[arebelspy]

Often government employees can have a 403b and 457b, and max both.

[Manguy888]

+1 to arebelspy - my wife is a Massachusetts state teacher and has access to both a 457 and 403(b). I believe we can max both, meaning that with my 401k we can put aside a mean 54k pretax.

In her case the 457 is the same across the state and looks pretty good as far as fee and fund selection. For the 403(b), however, there are about a dozen companies she can work with. All of them appear to be insurance company-type setups with a contact number for a local person. Whenever I see a local contact I think FEES! PERSON TRYING TO SELL ME OVERPRICED FUNDS. So just a note to be careful in your 403b selection.

[ruraljuror]

Based on the IRS website, it doesn't appear that our agency would not qualify for a 403b but I will ask. They are trying to set us up with a 414h, which appears to meet our needs. Anyone have experience with this type account?  They've said we can elect to contribute up to 25% of our income and I haven't seen a dollar amount max online.

[forummm]

Often government employees can have a 403b and 457b, and max both.

Based on the IRS website, it doesn't appear that our agency would not qualify for a 403b but I will ask. They are trying to set us up with a 414h, which appears to meet our needs. Anyone have experience with this type account?  They've said we can elect to contribute up to 25% of our income and I haven't seen a dollar amount max online.

Hopefully the 403b option will work out. Lots of universities and other state employees have both a 403b and 457b. And you can max them both out. If your agency includes another defined contribution option as well (e.g. some have another plan in lieu of a pension where you can contribute a fixed % of income and the employer contributes another fixed % of income), you can participate in that too. Your total contributions just can't exceed $53k/year (or $59k if old enough for catch-up).