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My employer allows me to invest in the 457 plan. The employer matches a small portion of my investment. (this is very good--free money). The plan is run by the ICMA Retirement Corp.. I'm still trying to figure out the fee structure for the 457 plan.
Should I take 1/2 of my monthly investment and place it in a 401k plan?, or is it allowed? I really do not know the difference between the two plans, except for the free boost from the employer.
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No. of Recommendations: 2
Beginning in January of 2002 the main differences between 457 and 401ks will go away. Both plans will allow you to contribute up to $11,000 per year on a pre tax basis. It used to be 457 money could not be rolled over to IRAs but that will change a swell. I would contribute to the plan that has the employer contributions first. If the plans both have the same investment choices, I would just stick with one of them. Otherwise go where the choices have the lowest expenses.
Currently a 401k offers a little more protection in case you have creditors trying to claim your assets.
Take advantage of the employer money first.

Bill
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