{"id":6408,"date":"2015-09-23T06:52:54","date_gmt":"2015-09-23T13:52:54","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=6408"},"modified":"2019-06-25T03:22:37","modified_gmt":"2019-06-25T07:22:37","slug":"need-know-457b-plans-retirement","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/retirement\/need-know-457b-plans-retirement\/","title":{"rendered":"What You Need to Know About 457(b) Plans and Retirement"},"content":{"rendered":"\n<p><strong>457(b) plans<\/strong> are a great investment vehicle <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.paladinregistry.com\/retirement\/retirement-in-america\" target=\"_blank\" rel=\"noopener noreferrer\">for retirement<\/a><\/span><\/strong> for those who work for colleges, universities, unions, certain governmental organizations, non-profits, etc., and they have some interesting features that can make them very advantageous.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits Of a <strong>457(b) Plan<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>You can contribute $18,000 for 2015; if you\u2019re over age 50, you can contribute $24,000, and if you qualify for pre-retirement catch-up contributions you can contribute up to $36,000<\/li><li>Contributions to the traditional <strong>457(b)<\/strong> plan are&nbsp;done on a pre-tax basis through salary reductions, and are tax deductible <strong>457(b) plans<\/strong> are considered non-qualified retirement plans)<\/li><li>If your employer offers a <strong>Roth 457(b)<\/strong> option (NOT required on their part), there are no income restrictions to making contributions as there are in a Roth IRA, plus your <strong>457(b)<\/strong> contribution limit of $18,000\/yr. is much higher than the current Roth IRA contribution limit (only $6,000\/yr.) so you can save more. One drawback:&nbsp; the Roth deferrals are NOT tax deductible, but your withdrawals in retirement are TAX-FREE<\/li><li>Your savings grow tax-free, and you only pay taxes after taking distributions from a traditional <strong>457(b)<\/strong> in retirement (<u>NO<\/u> 10% penalty for withdrawals taken before age 59-1\/2; this only applies if you no longer work for your employer); your <strong>Roth 457(b)<\/strong> withdrawals in retirement are distributed TAX-FREE also.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Disadvantages Of <strong>457(b) Plans<\/strong> <\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Sometimes there is a lack of quality <strong>457(b)<\/strong> choices for you to invest in (either too expensive, not enough investment options, etc.)<\/li><li>You lose the benefit of no 10% penalty on early withdrawals if you roll your pre-tax <strong>457(b) plan<\/strong> into a traditional IRA<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.paladinregistry.com\/find\/search-for-local-financial-advisors\">Find an experienced <\/a><strong><a href=\"https:\/\/www.paladinregistry.com\/find\/search-for-local-financial-advisors\">457(b)<\/a><\/strong><a href=\"https:\/\/www.paladinregistry.com\/find\/search-for-local-financial-advisors\"> financial advisor<\/a> who works for an RIA firm, earns his\/her money from fees (NOT commissions), believes in having an abundance of investment choices for clients, and has the heart &amp; demeanor of a teacher, NOT a salesman, and chances are you\u2019ve found the right <strong>457(b)<\/strong> financial advisor to help you and\/or your employees prepare and plan for retirement.<\/p>\n\n\n\n<p>To learn more about Martin Federici, view his <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.paladinregistry.com\/financial-advisor\/dallas-pennsylvania\/Martin.Federici.Jr\" target=\"_blank\" rel=\"noopener noreferrer\">Paladin Registry profile<\/a><\/span><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>457(b) plans are a great investment vehicle for retirement for those who work for colleges, universities, unions, certain governmental organizations, non-profits, etc., and they have some interesting features that can make them very advantageous. Benefits Of a 457(b) Plan You can contribute $18,000 for 2015; if you\u2019re over age 50, you can contribute $24,000, and if you qualify for pre-retirement catch-up contributions you can contribute up to $36,000 Contributions to<\/p>\n","protected":false},"author":12,"featured_media":6411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[],"class_list":["post-6408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>457(b) Retirement Plan : Advantages &amp; Disadvantages You Should Know<\/title>\n<meta name=\"description\" content=\"457(b) Plans and Retirement are a great investment options. 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