Nope..the Golden Goose is a pension if you worked for the government for a loooong time. The 457 is the baby golden goose or maybe the icing on top of the goose? And...if you have a very good pension and saved tons of $$ in a tax deferred 457, you may have a tax time bomb waiting to happen. Ask me how I know!I recently learned that a governmental 457(b) plan can take withdrawals upon severance even before 59.5 penalty-free
Is this the golden goose, all things held constant (fees, choices, etc.)?
Right now my spouse and I are planning to retire around 54ish years old once all kids are through college. This leaves about 5-6 years where we'll have to live on the 457(b) and Roth IRA contributions.
I figure the way we should structure it is to have enough in the 457(b) to maintain our lifestyle for at least the 6 years, and have a decent amount of Roth IRA contributions to pay for any large single-time expenditures (like a major home renovation). We wouldn't have to withdraw the entire 457(b) during before 59.5, but could do roth conversions up to whatever tax bracket we wanted with the remainder. After 59.5, go ahead and start drawing from other tax-advantaged accounts, penalty free.
Statistics: Posted by HipCoyote — Fri Jun 14, 2024 9:47 pm — Replies 10 — Views 865