Which Is Better, a 457 or a 401(k)? | Ask a Fool

by | Aug 26, 2022 | 457 Plan | 9 comments

Which Is Better, a 457 or a 401(k)? | Ask a Fool




This video is part of The Motley Fool’s “Ask a Fool” series.
Have a question about stocks, investing, a specific company, managing your money, or any other aspect of the financial world? Simply email AskAFool@fool.com and we’ll do our best to get it answered!

In this installment of Ask a Fool, Fool contributor Dan Caplinger takes a question from a Fool reader, who writes, “Which is better: a 457 or a 401(k)? If you had a choice for a 457 or a 401(k) or both to invest in, which would be the best option?”

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9 Comments

  1. bigtoeknee11

    401ks can also be withdrawn from penalty free if you retire from that company's 401k plan and also via rule 72

  2. Ann Jean

    Great video!
    Thank you for sharing.

  3. Humphrey Jones

    This video is mostly yipper yapper.

  4. Black Diamond

    Question also asked can you invest in both?

  5. Dan Johnson

    What about 403 vs 457?

  6. SkipSh00ter

    If I have a pension plan that I contribute almost 14% into, how much should I put into my 457? They are seperate. For the past 14yrs I've contributed 3% to 457. Should i do more or less or does it matter if i plan on working 29 years at 2.75% per year of my best 3 yr average

  7. MyNameIsNotImportant

    Deferred comp is only for state and local government employee

  8. Yg Bodybuilder

    whats the point neither have a interest rate, i have a annuity that gains 4% interest, i rather put my money in there

  9. Richard Chen

    457 much better. Who needs that 10% penalty? I might need to pull out and put all my money into a hot option.

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