403(b) and 457 Plans – How They Work Together

by | Aug 3, 2022 | 457 Plan | 28 comments

403(b) and 457 Plans – How They Work Together




2022 Financial Planning Cheat Sheet

403(b) and 457 plans are common retirement investing options for public school teachers, employees, and education professionals. There’s a lot to consider when saving for retirement.

In fact, teachers have more choices than employees in the private sector and the options can be confusing. In addition to some of the nuances involved with CalSTRS and Social Security, many teachers are eligible for 403(b) and 457 plans.

In this video, we’ll take a closer look at 403(b) and 457 plans and examine how they can work together. For additional information on these retirement investing plans, please review my article linked below:

⚠ Please don’t take this video as specific advice for your specific situation. Consult your own tax, legal and investment advisors. 👍

➡ Find out more about me at

➡ Follow on Facebook

➡ Follow on Twitter

➡ Connect with me on LinkedIn

#DavidWaldrop #investing #403(b) #457 #teachers…(read more)


LEARN MORE ABOUT: Retirement Planning

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing


See also  NEW 2022 401k Contribution Limit #shorts #retirement #retirementplanning
Truth about Gold
You May Also Like

28 Comments

  1. Mercantilism

    How are they different from a saving account?
    I can deposit money into a saving account as much as I want. I don’t understand the difference.

  2. G URSUA

    If you have both 403B and 457 Plan, is the limit 20500 x2 or just 20500 for both?

  3. monique godbold

    Can you lump sum to a 457 on and off. Example qtrly incentive payout

  4. jrichman21

    Assuming I would only pick 1 – If I am not going to retire before 55, does it make a difference which one I would choose?

  5. Susy Cherian

    If someone currently contributes to both 403 b and 457 b . and planning on retiring at 50 from 403 b employment, could that person take the 403 b money to 457?

  6. graceychen07

    I’m 45 years old and my 457b govt plan allows me to transfer it to a ROTH. Is it a good idea to do it now or wait until the market crashes? Thanks.

  7. Cherry Marquez

    I just retired last June and only have a 403b. Should I get a 457 too? if my school offers it? I'm 58. 30 yrs in service.

  8. Shu-wen Lu

    457 (b) plan balance currently contains former 401 dollars that was rolled over.  A person is 66 years old now and plan to continue to work after the age of 72.   Will that person be required to take RMD amount for the rolled-over 401 portion when that person reach the age 72 and afterwards?   Thanks.

  9. dcasanova26

    If i had to pick one plan, the 403b vs 457, which would you choose? Sounds like the 457 has the edge since you don't receive the 10% penalty for taking money out if before the age of 59.5. Are there any other benefits to a 457 plan and are there any circumstances when a 403b would be preferred over a 457? Also, I am 30 years old making on the lower end of six figures and should qualify for a Roth. Should I first max out the employer's TSA 403b Roth before contributing to the 457b or TSA 403b – Traditional plan? I think it would benefit me to do that first so I have fewer taxes to pay upon retirement. Thank you!

  10. Baybay

    My husband’s retirement plans with TIAA Cref. His company offers three retirement plans- 1)required 403B with employer’s match 2) deferred Annuity (403B supplement), and 3) 457. He has been contributing only the required 403B in the past. Now if we pick both 403b supplement plan & 457 plan, can we contribute $19000 for each? $38000 total? Or just $19000 in total? Please advise. Thank you.

  11. Jim B

    Is it prudent to use contribute to a 403b and or 457 plan when they have such limited investment options and have very high fees?

  12. lekwalo Edwards

    how do I get hold you for more explanations

  13. Ann Jean

    Great video!
    Thank you for sharing.

  14. Willert Morris

    What public employee can comfortably contribute $50,000 pa? Are they earning $500,000?

  15. joseph ferras

    We have moved from my old job in one state where I had a 457 plan that I contributed to monthly to a new state where I took a new teaching job and for last 2 years have been contributing to my school offered 403B plan monthly. How can I and should i bring my saved money from my former 457 plan into my current 403B plan? Thannks in advance.

  16. Scott Shannahan

    What does "retirement" mean in this context? Retirement from teaching? What if I get another job or have a side business?

  17. utahgirl2636

    Thank for information. It is very helpful. I have been putting money to 403 b. I think I have 457 option too. Well… I am really in looking for retirement plans and investment. My employer offers two investors. I can choose either Fidelity and TIAA. I don't know the difference between them. Do you think you can explain. My 401 goes to TIAA anf 403 b goes to Fidelity. I don't know why even I set up separately. Thanks

  18. Kristal Ware

    Hey there what is the recommended amount to start contributing into a 457B plan for a 34 year old?

  19. Samuel Ballachino

    I have a 403 b plan. For 2 years. Should i look into a 457 plan? I also have tiaa. Plan

  20. Visaliaipa

    I have a couple of questions. I’m late to the game as far as contributing to my 457. I’m 50 (51 this year) and plan in retiring in 4-5 years. I have a defined benefit pension so I didn’t contribute to my 457 early in (I know stupid). I’m currently doing 1000/month and they have a ROTH option as well. Would it better be better to do the ROTH option as well or open a separate EOTH through a brokerage firm or bank etc. and, can I still contribute to a 457 post retirement. I know you can’t do it for a ROTH unless you have qualifying income. We live within our means and my pension will be plenty to live on FYI.

  21. Nepthu

    Great info! I've been contributing to my 457 plan. I want to increase that contribution by at least 5% this year since I'm not spending money on travel and vacations due to COVID. I figured this would help magnify compound interest even if I have to decrease my contributions again in 2021. You can decrease contributions in the future, correct?

  22. Mauriccio Navarrete

    Great information! Thank you so much this video really helped. Now I hope to help my mom who’s a public school paraeducator and is over 50 and did not know anything about retirement accounts. Thanks again!

  23. tristan girod

    I plan on retiring early with my Roth 457b plan, from what I understand because its a Roth when I withdraw I shouldn't be hit with any taxes or any fees regardless of my age correct?

  24. ALLIN GOLD

    "Withdrawal."

  25. Ngoc Hoang

    Excellent information. Thank you! Could you comment on the idea of maxing out the 457 instead of 403b first, since it can be withdrawn at any point to maximize pre-tax dollars? What are the disadvantages of that strategy?

  26. Christopher S. Dennis

    Very helpful video. Can you speak about what is referred to as a top hat 457b plan? What is the difference?

  27. Ambika Adhikari Tiwari

    My contribution to 403(b) and 457 is pre tax pre tax contribution. Now I knew that it is beneficial to have after tax contribution to these plan. Is it possible to convert both to after tax contribution?

  28. story mode gamer

    can I contribute to my 403 and 457 plan and also Roth IRA ?

U.S. National Debt

The current U.S. national debt:
$35,350,842,310,771

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size