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URL:  http://boards.fool.com/my-job-offers-a-457-tax-deffered-planinstead-of-13342995.aspx

Subject:  Re: 457plans vs Roth IRAs Date:  9/21/2000  11:11 AM
Author:  Foolishoamy Number:  24959 of 86444

My job offers a 457 tax deffered plan,instead of a 401K.I can retire at a young age in 4 more years and collect half of my current yearly salary for the rest of my life.Will it be wise to start contributing to the 457 plan or to a Roth IRA

Hello orsogna,
This depends as, stated in an earlier post, on the choices in your 457 plan I don't think 457's do matching funds particularly when you have a pension and it sounds as if you do. Also will you be in a higher or lower tax bracket when you retire? Higher? go with the Roth and pay the taxes now. Lower? Take the 457 (if the choices are good) and pay the taxes later.

I believe you can't roll over your funds in a 457 plan.I will be 46 in 4 more years and plan on openning my on business

This is currently true, but there is legislation currnetly passed by the house and in review by the senate to change this so you can roll over 457 funds into a traditional IRA. This is the same bill that would raise contribution limits among other things.
Hope this helps.
Bring me a line,
Brian

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