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Roadrunner

457 Question

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So I have 2 questions (maybe 3) about my 457.

 

I'm not the most observent person in the world, and I thought I had a 403(b), but I was viewing my portfolio online today and it said 457(b), so I guess that's what I've got.

 

Thus:

 

1) Is there a big difference between a 403 and a 457?

 

2) Do I need to open a 403(b)

 

3) Does Tiaa-cref have a 457 lifestyle fund? and should I roll my stuff into it? I'm 26, so I have a loooong way to go.

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1) There's are pretty significant difference between the two plan types. But not a whole lot of difference from strictly a salary deferral only perspective, unless you work for a nonprofit company instead of a government employer.

 

I've included a link that I have found helpful. Because the message board here shortens these web-link shortcuts, I've tried to make the full web address stay whole, but that means you'll have to cut and paste the link into your web address window.

 

2) I don't know.

 

3) I mostly try to stay out of the discussions on the investment side of things, so perhaps someone else can comment on that.

 

 

If this link creates more questions for you, please feel free to ask for more help!

 

http://www.prudential.com/media/managed/2008LimitsNFPGovt-Bulletin-1007.pdf

 

PS. I don't work for Prudential or deal with any of their products, but I like this chart.

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Roadrunner try this link as well from the IRS:

 

http://www.irs.gov/pub/irs-pdf/p4484.pdf

 

Roadrunner, if it was me (I have no idea what your financial issues are), I would evaluate both the 403b and 457b options. For example, 1) what funds are offered in each, 2) what expenses are in each plan and finally 3) which plan can give you the most diversity in asset allocation. You could add a fourth and maybe use both plans regarding 1, 2, and/or 3.

 

Having two options is a good thing, provided items 1, 2 and/or 3 get you on your way to long term investing. I have four 457 plans at work and in the past use the best of three plans to get what I wanted.

 

Once the county added a fourth provider, it was the hands down winner regarding index funds, lower cost and good asset allocation. The other three plans at this point are terrible (especially due to cost and lack of offerings).

 

Gerry.

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