I work for the City of New York, and have the option to contribute to a 457 plan (pre and post tax)---which seems like a good benefit. I'd like to max out my 457, since I'm 30 and just beginning to save for retirement now. However, employees who don't pay into the pension system (I don't) will stop paying Social Security tax if they contribute more than 7.5% in any of the deferred compensation plans, and I'm wondering if this will be a problem for me in the future.
A few things to keep in mind:
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I am not contributing to the pension system because you have you to work there for ten years in order to be vested. I plan to move out of of NYC in less than two years, so even though the pension compounds at 5% each year, it seems like the 457 is a better option for the short term.
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The city does not match for any of the 457/401k options
Submitted August 06, 2017 at 05:21PM by visionsblue http://ift.tt/2vuU0aj
