Posted: 5/18/2022 1:38:07 AM EDT
So I have and use ROTH and TRAD IRAS. I have one I setup to buy 100% VTI each month, another I do some fun trades with.
I recently got access to a 457b via career change. The company puts 6% in (if I put in 0% they still contribute this), and then will match 100% of 3% that I put in the 457. Pretty decent, but has a 7 year 100% vesting period, which I am not fond of.
I am currently trying to decide how much to put in my 457 vs IRA's. I will be under the income tier to allow Roth's, and close to the amount to reduce trad ira contributions/deductibility.
Plan is through nationwide. I understand I can access 457 plan before age 59.5 without an early withdrawal penalty which is nice, I can see that being a handy bridge.
The trouble is I am running through nationwide allowed funds. Fees are around 0.47-0.9%. There are target date funds (like .47% fee) and I can roll my own pickings (from things like bond funds, to sp500 funds, to mid cap funds), anywhere from .47-.91% fee.
How much should I be contributing to this plan? The minimum I know is the 3% to get that match, but should I be putting more to take advantage of the 457 deferral? If it doesn't go into 457 it will go into ROTH/TRAD ira up to the maximum, invested per month so I won't ever see the money.
Quick math shows VTI is like .04% fee yearly. Looks like I am basically paying nationwide .43% per year. I'm thinking I will do 6% my contribution, plus 6+3=9% on the company side. Total percent 15% a month, and then 5% a month goes into ROTH.
#1 I want to know how much percent to save.
#2 How much to save into 457, vs IRA.
#3 am I tripping over a dime to save a nickle worrying about this almost half percent I lose in the 457, as a cost of doing business?
One advantage of a 457 is normally you can start distributions when you retire without having to reach a retirement age.
How do I decide between Roth and trad 457 contributions? My view is at present I'm in a big enough yeah bracket that deferred is nice. The other side is pay the tax man now at known rates and enjoy the gains later because surely rates won't ever decrease bigly.
I do intend to max a Roth IRA.
We got any CFP's here, or suggestions on one that can take a look at where I'm at? I think its dialed in, but 2nd eyes never hurt.
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