Author Topic: 457+401k?  (Read 4463 times)

PAstash

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457+401k?
« on: April 10, 2016, 03:30:03 PM »
I work for the state. They provide a 457 plan which I am currently maxing out. They also offer us a pension.

Can I start my own 401k? if yes could I contribute to this pretax? I'd like to find more ways to lower my AGI.

forummm

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Re: 457+401k?
« Reply #1 on: April 10, 2016, 04:08:47 PM »
Does your employer offer a 401k or 403b? If so, you could take advantage of it while also maxing the 457. But you can't just create your own 401k plan unless you have your own business in addition to your job.

PAstash

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Re: 457+401k?
« Reply #2 on: April 10, 2016, 04:18:06 PM »
no they don't.

what would I have to do to "create my own business" within the bounds of being a landlord to qualify for the sep-ira.
 
like do I need a LLC? Just by owning a rental property that I get taxed on Is that enough to justify it?

bacchi

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Re: 457+401k?
« Reply #3 on: April 10, 2016, 04:36:13 PM »
You'd need to be an active real estate professional. Just owning rental property won't cut it, no matter who owns it.

Can you get an HDHP and an HSA? Is your income low enough to qualify for a traditional IRA?

redcedar

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Re: 457+401k?
« Reply #4 on: April 10, 2016, 04:46:25 PM »
Sometimes govt agencies are not the best at marketing their retirement plans. If you haven't done so yet, call and grill your HR or benefits department.

If they say no, or you know it's no for sure, ask them why the don't offer one. Even without an employer match, a 401k or 403b should be offered, regardless of the 457 plan offered. Maybe your efforts and some from your coworkers can help get one started.

PAstash

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Re: 457+401k?
« Reply #5 on: April 10, 2016, 04:47:17 PM »
nope to all of those things. =/

thanks for your efforts tho. I've been at it for awhile. I make to much (which isn't a bad thing) or those plans are not offered.

Mr. Boots

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Re: 457+401k?
« Reply #6 on: April 11, 2016, 08:47:54 AM »
PAstash - I'm assuming from your handle and post that you work for the PA govt. I do, too. Just wondering what agency and if you're in Harrisburg? I have yet to meet a Harrisburg mustachian!
Also, good for you for maxing out the 457b. I'm not there yet, but it looks like you actually could lower your AGI further with a solo 401k if you had a side business that qualifies, since 457b deferral limits are separate from 401k limits. Pretty nice benefit of 457s that I wasn't aware of until now. https://www.irs.gov/Retirement-Plans/How-Much-Salary-Can-You-Defer-if-You%E2%80%99re-Eligible-for-More-than-One-Retirement-Plan

PAstash

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Re: 457+401k?
« Reply #7 on: April 12, 2016, 12:41:23 PM »
Howdy! Here i was thinking i was the only sane person in PA. Sadly no i ive 40 mins south of pittsburgh. You are only a few hours a way. We should have a meetup! =D