457B Retirement Plan for Dummies #retirement #retirementplanning

457b Retirement Plans for Dummies

A 457 b is a tax advantaged retirement savings plan.

In some ways it's pretty similar to the more common 401k plan or even TSP or 403b plans

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Eric Amzalag, CFP®, RICP®
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00:00 Intro
00:34 What is a 457b
01:00 How 457b Accounts Help You Save
03:08 Contribution Limits
05:48 Withdrawal Features
06:35 Are there ROTH 457b
06:55 Are you required to take RMDs from a 457?
07:11 How are distributions taxed?
07:59 Can you rollover a 457
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Disclaimer: Please consult with your own tax, legal and financial advisors for personalized advice.

#retirement #retirement #retirementplan #retirementincomeplanning #retirementincome #fiduciary #financialadvisor #financialadvice #feeonly #feeonlyadvisor #feeonlyfiduciary #financialplanner #certifiedfinancialplanner

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[vernshird]

I'm in year 2 of the 3-year special 457b catch up. I'm retiring at the end of 2025. If you have an employer that offers both a 457b and a 401k/403b, then contribute to both if possible - it supercharges your retirement nest egg. The 457b can also be used as a bridge to SS if you decide to retire early.

[moriscondo]

that whole part at about 9:50 about being taxed on a Roth 457B if you take withdrawls before age 59.5 was an eye-oppener. The logic of the rule doesn't make any sense to me. but I am glad to be told of it. Thank you! up until seeing this, I was under the impression that I could take out $$ from my 457B after age 55 without penalty as all my contributions are Roth, while my employer's contributions are pre-tax. Bummer ....

[JeffreySmith-ifey]

My 457b plan is allowing me to retire 5 years earlier than I would have without it. I have been saving into both a 457b and a 403b plan for 25 years now and I plan on retirement in 2025 at age 62. It has been a tremendous savings vehicle for my retirement. I recommend it to anyone who can max out their 403b/401k with employer match first, but also have additional income to invest after that.

[royjohnson]

Bro you are severely underrated on this platform. You are clearer than most and teach well.

[TamaraAWhite]

This video was so clear, concise, and helpful. For real. Thank you.

[flashbang]

Thanks for the video. One thing to note is that non-governmental 457b are limited in rollover potential. Only rollover potential is to another non-governmental 457b which seem pretty uncommon. I plan to retire early but don't know exactly when so if I switch companies I can be in for some pretty difficult decisions. Also it sucks if my company ever goes bankrupt, the money in its entirety could be lost.

[jacquelinepaiva]

I contacted my HR today because of this video and found out I have a Roth 457 option so now I’m going to do both! Thank you!

[SelfEvaluate]

Thank you! Im in the education field with a 457b! Very informative and helpful

[ivanthegreat]

I’m a 28 year old train operator in Chicago and just enrolled in a 401k account, But feel like 457 might have been the smarter move? Looking for a little more insight on what might be more beneficial for me going forward. Thank you!

[Gloppp]

Exactly what i needed. I have a pre tax 457b & the state allows me to roll my plan into a roth. I will be 59.5 when i retire with a pension & it sounds like i can avoid being taxed in a roth at 59.5 🎉

[justintx]

thanks for the great video that explains everything

[davidater]

Nice Job. You were very clear. I like that you mentioned pairing this with a traditional pension plan. That makes a 457b into a mega sized IRA, with special rules.

Question: Do the contributions have to be by payroll deduction? or can a person wait until December and decide to contribute the 22k or so to the plan?

[Flush]

49 yr old city employee here (roughly $110k per year). I am currently contributing 8% to Deferred Compensation 457 Plan & 7% to Deferred Compensation 401(k) Plan. Does this sound about right?

[damonross]

Could you link the video that talks about roth or tax deferred contributing?

[Chris-hwnx]

So I want to be super clear. I can withdraw deferred income from a 457b at age 55, 56, 57, 58, up to 59.5. Without 10% penalty? Im formulating a plan for early retirement and my 457b currently has $0 because i never knew what it was.

[WhiteRiceCycling]

Hello.. love the video. New sub!
Got a question. I have a 457b pre-tax since 2017. Been contributing 50 biweekly til 2020 then went fr 50 to 100 bi-weekly 2020-2023. Now i have change it to 200 bi-weekly. Just got a good raise last yr. Was making 50k to 61k a yr gross. I keep reading everywhere i must invest 15% of my income and you mention about roth 457b. So if i decided to invest 15% of my income. Can i do 7.5 both 457b pretax and roth? Is this wise thing to do? Im 37 this year and have 19k on my 457pretax. Ty

[Konti]

For 457b Roth is the limitation same as traditional? In other words for 2023 can I contribute $22, 500 into roth 457b?

[pauls]

Great information! I’m currently contributing to a 457b plan and a backdoor Roth IRA with Vanguard. Can I also open an individual 401K account with Vanguard and contribute pre-tax? I already maxed out my 457b for the year, and I would like to max out the 401k to take advantage of the tax benefit.

[TUDBEE]

Hey there, I just started a job in a school district in California. Calpers offers both 403b and 457, if I could only choose 1 for now, which should I go for?