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One problem that was ignored was the ownership of the funds within the plan. The company not you owns the funds in 457b plan. The company can not use these funds for day to day usage, but these funds are considered an asset of the company for bankruptcy. These funds can be & probably would be used to pay creditors in a bankruptcy case.

Great point, jdbst!

IMHO very few people truly appreciate this risk you've noted. Though it may not be much of a risk if one works for a major corporation that's been around a long time, its enough of a fundamental risk that people ought to pause - a LONG pause - before they jump in.

BTW, are these 457b plans subject to ERISA and its protections? Or are they what are called "Non-qualified" plans?

Ken


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