I am a teacher. My school district during Covid started to offer us a 403b/457 traditional or roth. I went with the 457 roth. They also do a match in a 401a every month. I have been investing for more than 20 years in my roth, brokerage account, and HSA every month. Happy Holidays to you all. 🙏🏽
I accidentally signed up for the 457. Best financial mistake of my life. 😂 I had no idea of the difference between the 403 and 457, but knew I needed to invest in a retirement account.
457b is ok but you are hit with a 20% tax upon withdrawal and if you do roth than 59 1/2 age restrictions. Also there is a wait time of 51 days before the payout from the day you retire.
I am a teacher. My school district during Covid started to offer us a 403b/457 traditional or roth. I went with the 457 roth. They also do a match in a 401a every month. I have been investing for more than 20 years in my roth, brokerage account, and HSA every month. Happy Holidays to you all. 🙏🏽
I accidentally signed up for the 457. Best financial mistake of my life. 😂 I had no idea of the difference between the 403 and 457, but knew I needed to invest in a retirement account.
$26,000 in my 457 and it grew almost by $5000 this year by interest alone.
Good video
Does this apply to the Roth version as well?
You gotta wait till 59.5 years old for the tax-free benefits of the Roth 457.
457b is ok but you are hit with a 20% tax upon withdrawal and if you do roth than 59 1/2 age restrictions. Also there is a wait time of 51 days before the payout from the day you retire.
You also get hit with income tax if you withdraw from a traditional 401k.. so that's not really a negative
That's just withholdings. It's subject to normal earned income tax rates which vary by income.
That’s normal. A traditional account gains are taxed. Same as 401k and 403b. But no early withdrawal penalty. 457 > 401k and 403b.