I'm lucky to have access to a 403(b) and a (governmental) 457(b) at work. The party trick of the 457(b) is of course the lack of early withdrawal penalty.
Our retirement committee had a meeting with our plan advisor. As part of the agenda the advisor gave a presentation on the differences between 403/457 as well as a URL to share with our workforce:
https://www.captrust.com/resources/navi ... omparison/
Something that surprised me during the presentation is that the advisor stated 403(b) has more flexible distribution rules. You can just withdraw money or set up periodic payments. They stated that for a 457(b) you can only do a lump-sum distribution of everything or annual installments. The URL above states more or less the same.
I had never heard of this limitation to 457(b) and have been unable to find documentation of this anywhere else, including on the Bogleheads wiki. Has anybody heard of this or know further detail? Thanks!
Our retirement committee had a meeting with our plan advisor. As part of the agenda the advisor gave a presentation on the differences between 403/457 as well as a URL to share with our workforce:
https://www.captrust.com/resources/navi ... omparison/
Something that surprised me during the presentation is that the advisor stated 403(b) has more flexible distribution rules. You can just withdraw money or set up periodic payments. They stated that for a 457(b) you can only do a lump-sum distribution of everything or annual installments. The URL above states more or less the same.
I had never heard of this limitation to 457(b) and have been unable to find documentation of this anywhere else, including on the Bogleheads wiki. Has anybody heard of this or know further detail? Thanks!
Statistics: Posted by enc0re — Fri Dec 20, 2024 10:01 am — Replies 3 — Views 91