BTW I read the FAQs and a 457b isn't on there: http://ift.tt/2r4RiUq
Our situation is as follows:
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I contribute 6% of my salary to a 401K which is my employer match maximum. This is a little more than half the legal 401 limit.
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My wife and I both have IRAs (traditional, we cannot any longer contribute to a ROTH on most years, depends on bonus) that I max out each year at 5500.
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my wife (gov employee) also contributes to and gets a pension after 10 years of service, she does NOT get any kind of employer 401
My wife works for the state and after a year is now elligible for this 457b (http://ift.tt/2i61ZS8) which seems to be restricted to government employees. We don't have the free cash to also max this out in addition to the above.
Are there any advantages to stopping her IRA contributions in place for dumping more money into this 457? It would seem from Googling that they are identical except the contribution limits of a 457 look like a 401K.
Thanks in advance.
EDIT: That IRS link may reveal a hidden gem: "Contributions to a 457(b) plan are tax-deferred.". This seems to differ than an IRA. What does this mean?
Submitted July 10, 2017 at 07:25AM by counterweight7 http://ift.tt/2tyVsXy
