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Duncan

New NY state teacher 457b vs 403b

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Hi,

I was wondering if anyone could give some insight on 457b vs 403b. I'm a new teacher, 33 years old, my new york state retirement age is 60.

My new school allows for contributions to a 403b and 457b.  I made a post yesterday asking for advice on what 403b provider to choose.  I got some great information in return.  The response said my best options are : Vanguard or Fidelity.

My 457 b option for new york state just says : New York State Deferred Compensation Plan.

Do I go 457b or 403b?

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Hi Duncan,

The same people will respond to you here as you have already asked your great questions in the 403b forum. 

The primary difference: 457b plan you can roll over or take your money out without penalty when you retire. 403b you cannot touch your money until 59.5. But after 59.5 you can withdrawal your money and still be working in the 403b. In the 457b as long as you are working with the same employer that has your 457b plan, you cannot touch the money.

There are hardship exceptions but in those cases, you will have to pay taxes. 

Here is more information, A LOT MORE! https://www.investopedia.com/articles/personal-finance/111615/457-plans-and-403b-plans-comparison.asp 

Steve

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Duncan,

The ny 457 aka deferred compensation plan is amazing.  I only wish I knew about it earlier.  Amazingly low fees and transparency.   I moved my crappy 403b to security benefit direct invest and make all my new contributions to the ny 457.   You can easily create a three fund portfolio.   The names are kind of funky so ask if you need help making a three fund portfolio.

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