457 vs. IRA contribution?
I am currently investing $650 monthly into a 457 plan that my employer offers for the last 8 years. The issue is that I do not have an IRA, and now I wish to contribute more into my 457 plan. So, the question is should I start an IRA or continue to invest only into my 457? My second question would be what percentage?
Permalink Submitted by Al Fry on Mon, 2008-06-09 00:58
Is this a 457(b) State or local Government Plan? Or do you work for a non-profit?
Permalink Submitted by Ricardo Rivera on Mon, 2008-06-09 02:54
This is local government that that does not contribute but is pretaxed.
In the long run (20 years from now) what will earn more money investing in the 457 or the ROTH IRA?
I have come to learn that I must weigh the money I am saving by the 457 being pretaxed along with my investment options offered by 457 (ING) to the fact that I must pay taxes now on the roth/ira and not in the end.
I guess I have alot of homework, weigh the following options:
1-money saved, 457 is pretaxed
2-look into the 457 investment options vs. Roth IRA’s
ROTH options are probably better, but in the end are these options going to better than the fact that the 457 is pretaxed?