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Author: rickgreen Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19380  
Subject: 457 plan and buying time Date: 4/8/1999 9:15 AM
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The State of Colorado allows members of Public Employees Retirement Association,a 401(a)Plan, to purchase years from their 401(k) and after tax sources. The average return on buying time in the this pension plan is approximately 13 percent plus cost-of-living increases which vary. If the cost-of living increase is 3 percent, the return is 16 percent for life. I can "strip" another retirement program, a 457 plan, to buy more years, but will have to pay taxes of 35 percent.

Now for the question. Is it better to leave the money in the 457 plan to grow and take it out later, or buy the years? I need a minimum of 20 years to retire with a pension, and already have that.
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