How do I choose between 457(b), 403(b) and 403(b)7 ? What is the differences between them.?
Question:
457(b): Citistreet, Northwestern Mutual Financial, Valic
403(b) and 403(b)7:
Citistreet, Horace Mann, Lincoln National, Metlife, Merrill Lynch, Mutual of America, Prudential
Should I switch to one of these companies?
I appreciate anyone who can answer any part of these questions.
Answer:
A 457 is a state sponsored retirement plan, and 403(b)'s are generally for not-for-profits. I would suggest a regular old 401(k) even if you are a NFP, as the advantages are numberous, ranging from avoiding annuity wrapper fees to transportability of assets. Look into it with someone qualified. I don't know who is talking about 457 plans, they are probably not appropriate for you, and you're probably not even eligible to have one...might want to talk to someone else if someone mentioned that, unless you are a state agency or quasi-gov't entity.
You cannot transfer between 457 plans and 403(b) unless something has changed recently. 403(b) and 403(b) 7 plans are "tax deferred annuities," for certain tax exempt organizations. 457 plans are deferred compensation plans. 403(b) plans aer savings plans, 457 plans are take current compensation and pay it to you in the future.
You should look at each of the other plans regardless of whether or not you change. There is no evidence you are in the plan best fitted to your needs. If you have the possiblity of making a change, you should consider it.
More Questions & Answers...