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cloudeleven

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  1. I was wondering if governmental 457(b) plans are protected by Federal law from lawsuit judgments against the employee and bankruptcy of the employee like 401(k) plans are? I tried to search the forum, but search isn't working right now.
  2. A 457(b) plan is available to me at work. This is a really good plan that includes Dodge & Cox Stock, Calamos Growth Fund, Julius Baer International fund, and other good funds. All loads are waived. The plan itself has an annualized administrative fee of 18.9 basis points (0.189%). I also recently opened a Roth IRA. Right now, I have TAVFX, FAIRX, and DODFX in it, and I plan to buy CGMFX soon. I know people rave about the Roth IRA being great, but the 457(b) is even better for people who retire before age 59 1/2. You can withdraw the money (contributions and earnings) at any age with NO penalty. This is great since I hope to retire in my early 50s. However, the withdrawals (contributions and earnings) are taxed. With the Roth IRA, there is a 10% penalty if you withdraw earnings before age 59 1/2 (unless you annuitize), and the earnings (not contributions) are taxed if withdrawn before age 59 1/2. I'm 25 years old. My employer does not fund my 457(b) at all. It is entirely funded by the employee (myself). My annual income is $31,000. Since the 457(b) has more attractive early-retirement withdrawal features, should I focus on funding the 457(b) as much as I can, then funding the Roth IRA? Thanks for your advice.
  3. My mom withdrew a few thousand dollars from her 403b plan many years ago, and decided to pay it back (with interest) in 2005. Is the amount she repayed tax-deductible? The amount she repayed doesn't show up on her 2005 W2. The only retirement contributions that show up on her 2005 W2 are her regular monthly 403b contributions.
  4. I am a state government employee, and a 457(b) plan is available to me. I am 25 years old and make $31,500 a year. The maximum I can contribute to the 457(b) plan is $15,000 per year, and the maximum I could contribute to a Roth IRA is $4,000 per year. I plan to invest around 20% of my annual income, which this year would be about $6300. Should I put all of this in the 457(b), or put $4,000 in a Roth IRA and the remainder ($2300) in the 457(b)? Thanks for your help.
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