I suppose another option would be to reduce the 401k (still enough to get employer match) and move that amount over to the 457b. Then excess beyond that could go to MBDR rather than filling the 401k. That still moves the pre-tax vs Roth needle a little closer to the middle. I have been fond of the brokerage link option in the 401k though.Government 457b are like a special 401k. Same benefits of a 401k, but no early withdrawal penalties once you leave that employer. So no real drawbacks.
I fill my 457b before my 401k, personally.
1) Private (non-profit)1) Is the 457b governmental or private?
2)How many years until you would pull it out and what are options for dispersement
3) If not governmental, how sound is her employer financially?
4) what is your marginal tax bracket?
5) expected bracket at retirement?
6) What is the main purpose of the money? (That might sound like a stupid question but could affect the recommendation- early retirement or what?
7) since you also mention 529 as an option, does your state have a 529 tax break?
2) 25 years until i'm 59, so we'll use that number.
3) It's a large hospital system, definitely not going away.
4) 22% (LCOL area)
5) I'm not sure... are RMDs the main driver of this? no pensions for us.
6) Would like to retire early and travel more if possible, but who knows.
7) It does, but it's a low income tax state (5%). It seems to me the 457b or MBDR would be preferable.
Statistics: Posted by CostcoBoxWine — Sat Jun 29, 2024 2:09 am