Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Site Notices
Posted: 1/30/2017 12:49:58 PM EDT
Considering rolling over a 457 this yr into a recommended Vanguard IRA. Any disadvantages to that?  I see I don't incur the 10% if I take a distribution but other than that.   I have a fidelity 401k to roll and a TIAA CREF 403b to roll.

I might be in the position to fund a 403b and or a 457 again. Big might as its only 2 local employers for that and I nothing lined up. Just throwing that out.

Thoughts?
Link Posted: 1/30/2017 2:07:21 PM EDT
[#1]
It depends...
A 457 has some unique characteristics that have advantages if you are in certain age classes, or desire to access the funds before 59 1/2 years old.
You can take distributions without penalty from a 457 at ANY age after you sever employment with the sponsoring agency, you cannot do that with your traditional IRA.  I am not saying that touching retirement funds early is a good idea.
If you have no plans to access the money until true retirement age then there is no downside, in fact there is probably plenty of upside: most 457 plans have a crappy line of available investments (high ER) and / or other fees associated that you could afford in a self managed IRA.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top