What Is The Best Retirement Savings Account? 4 Benefits of Saving in a 457b Account

by Retirement Advisor | Nov 17, 2022 | 457 Plan

You might be wondering, “What is the best retirement savings account?” One of the best options (if not the best option–I like it) when you’re working for a public employer is a 457b deferred compensation account.

These accounts provide many benefits for future retirees, and this video will discuss 4 benefits of saving in a 457b account.

A 457b allows for automatic savings. David Bach recommends this in his book The Automatic Millionaire. All you’ll need to do is head to your HR director and sign up. Saving a percentage allows for your savings rate to stay the same if you get a raise. However, the amount of money you’ll save will increase as your income does.

There are tax benefits associated with a 457. Saving in a 457b cuts your tax bill in the current year. When looking at 457s and tax-deferrals, a 457 allows for tax-free growth. You’ll only owe taxes when you withdraw the money.

A 457b can help you save for early retirement. You can access the money without penalty as long as you quit your job. This can be for retirement or for another job.

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I am not a licensed financial professional. Content intended for entertainment/educational purposes.

*Some of the links may be affiliate links. I may be compensated if you sign up using one of these links. I do not post links that are not as good as the best publicly available offers at the time I make the post….(read more)