457(b) Vs. Roth IRA: Which one Should Your Prioritize?
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I’m maxing out my Roth 457b and Roth IRA…I’m 39 and started late about 3 years ago. I definitely going to retire in 7 years from the government…I have a second job that makes me more money so switch to that. I’m vested at 10 years with my pension so 7 years more, they take out 18% and they will match it 22% at 10 year mark with 5 % growth for every of those 10 years. Plus I have a brokerage that I put in a bit every week also
Roth IRA wins because at least at my job 457b pays out in full at separation. I have heard that at some jobs they will let you spread it out over a few years in order to minimize the tax hit, but not mine.
Max out my 457b but I make too much with Ot to max out a Roth IRA but when I separate I’m rolling over into Roth and go fully self directed
457b’s make an easy bridge account
Hi alll I also max out my 457 403b and Roth.I have a small amount left over what else can I do .I also do have a emergency fund
What do you do if your 457 does NOT have good options? I save 20% of my gross income (working my way up to 25%), maxing out a Roth IRA that's 100% in Vanguard target date index funds, and putting the rest in a 457 through a government employer where there's no match. There aren't many options in terms of funds available inside the 457, and expense ratios and internal expenses are kind of high. I'm not a high earner, and the majority of my retirement savings is in a fund where fees take a bigger chunk than I'd like. Does it make sense to start an after tax bucket before you reach the hyperaccumulation phase?
Similar situation. Between maxing out my Roth IRA and contributing to my Roth 457 (not maxing) I am investing 35% of my income. If I invest more, should it go to Roth 457 or creating a 3rd bucket (after tax brokerage)? Btw, I have a government Roth 457.
I work in public transportation for 22 years and I max out my Roth IRA also put 15% of my checks twice a month into a Roth 457b. When I reach 30 years of service I can receive 75 percent from a pension of my best five income years FOR LIFE also what I’ve built up in my HSA over the years.
I'd like some roth guidance. I'm maxing out my 401k pretax contributions due to what I believe is a temporary stint in a higher tax bracket, but I want to save more. I can either max out my Roth IRA or contribute the same amount to my after tax 401k and convert later. I may be getting close to the phase out limit for Roth IRA contributions, but I won't hit that this calendar year. Should I focus on the IRA or the after tax 401k contributions?
A small technical detail that may matter: 457s are actually deferred compensation. It’s not technically your money yet, so if something happens to the employer (eg, bankruptcy) your funds are at risk. Please also confirm whether your 457 is governmental or non-governmental.
My wife maxes out her 457 and 403b. I max out my 401k and family HSA. After annual roth IRA and college 529 contributions…..to be honest our monthly cash flow is terrible if not very pathetic!
You should probably edit the title of this video so it is “which one should you prioritize.” Take off the “R”
Do the Money Guy Team have any idea of of investing in a Traditional 401K vs 457 vehicle?
1st!