457b

[Interpolfanclub]

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Anyone have any experience using a non-governmental 457b? I max out my IRA, spousal IRA, and 401K, this = $27,000/year. I could invest another $17,000/year with a 457b being offered by my employer. If my employer went bankrupt, I could potentially lose it all but this is very unlikely. Just wanted to see if anyone else employed by a health system was using this option. Thanks.

 

[The White Coat Investor]

Anyone have any experience using a non-governmental 457b? I max out my IRA, spousal IRA, and 401K, this = $27,000/year. I could invest another $17,000/year with a 457b being offered by my employer. If my employer went bankrupt, I could potentially lose it all but this is very unlikely. Just wanted to see if anyone else employed by a health system was using this option. Thanks.

I would use it if it were available to me. But I'd move it away from that employer at the first available opportunity.

 

[MDnegotiator]

I would use it if it were available to me. But I'd move it away from that employer at the first available opportunity.

I'd be careful of that advice, OP did say it was a non-governmental 457(b) which means he may NOT be able to roll it over to an IRA as you're likely thinking. I could have misinterpreted your comment, and perhaps you were meaning to "move it away" to another employer.

http://www.457bwise.com/faqs/index.html states:
Private plans — Non-governmental tax-exempt entity plans:
457(b) can be moved to another tax-exempt organization's 457(b) if the plan accepts such transfers, but it may not be rolled into an IRA or another type of employer-sponsored retirement plan.

 

[The White Coat Investor]

I'd be careful of that advice, OP did say it was a non-governmental 457(b) which means he may NOT be able to roll it over to an IRA as you're likely thinking. I could have misinterpreted your comment, and perhaps you were meaning to "move it away" to another employer.

http://www.457bwise.com/faqs/index.html states:
Private plans — Non-governmental tax-exempt entity plans:
457(b) can be moved to another tax-exempt organization's 457(b) if the plan accepts such transfers, but it may not be rolled into an IRA or another type of employer-sponsored retirement plan.

You're right about the IRA rollovers. For this reason 457s should be the first money spent in retirement. I guess if you're really worried about the old employer you could just withdraw it all and put it in a taxable account.

People often mention this, but I've never heard of anyone actually losing 457 money.

 

[deleted126335]

You're right about the IRA rollovers. For this reason 457s should be the first money spent in retirement. I guess if you're really worried about the old employer you could just withdraw it all and put it in a taxable account.

People often mention this, but I've never heard of anyone actually losing 457 money.

You can't withdraw while still employed.

It wouldn't surprise me to see some nongovernmental nonprofits go under in the next decade.