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My current employer plan is a 457b. To me, it behaves no differently than my previous retirement accounts. At some point, I’ll have to withdraw funds and pay taxes at that point. Since the other plans were “ rolled over” I guess I was thinking that any retirement account could do that.
Actually I just looked it up and it can be rolled over. Just has to be a qualified plan.
There are two different types of 457b plans: governmental and non-governmental. Governmental act like a regular 401k/403b. Non-governmental, on the other hand, cannot be rolled over into another retirement account, and they are subject to creditor risk (meaning that if your employer went bankrupt, you might not see any of that money). The two types are so very different that I wish they'd be given completely different names. It sounds like yours is a governmental 457b, which is good. (Alas, mine is not.)
No, they don't. With a taxable account, you have to tell the brokerage what you want done with any interest or dividend income that is generated. You can still arrange to have it automatically re-invested, just like your current retirement accounts do, but at the end of the tax year the brokerage will send you the appropriate tax documents so you can pay the necessary taxes on any interest or dividend income your account made during the year.
Ah. I had no idea. I think I learn something every week on this forum! . Thanks!
There are two different types of 457b plans: governmental and non-governmental. Governmental act like a regular 401k/403b. Non-governmental, on the other hand, cannot be rolled over into another retirement account, and they are subject to creditor risk (meaning that if your employer went bankrupt, you might not see any of that money). The two types are so very different that I wish they'd be given completely different names. It sounds like yours is a governmental 457b, which is good. (Alas, mine is not.)
Yes, mine is. ( Thank goodness...wow I had no idea of the risk on the other type.)
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. Thanks!
