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457 Rollovers

The staff here at Investment Insight Wealth Management, LLC understands how important saving for retirement is, and we know how complicated the process can be for someone who doesn’t work in the financial industry. Keeping your retirement savings on track as you deal with life changes doesn’t have to be a headache.

457 Rollovers Defined

A 457 retirement plan, is a particular type of retirement plan offered to state and local public employees, and sometimes may be available to employees of non-profit organizations. These plans work much like a 401(k) in that you can choose to send part of your pre-tax paycheck to the account, where it grows tax-deferred until you make a withdrawal. The maximum contributions are typically the same as a 401(k) unless your employer offers another retirement plan option. If so, you can contribute the maximum to both plans. You will not be penalized with an early withdrawal, but you will owe income tax on those withdrawals, so the best advice is to leave the money there, so you have a nest egg when it comes time to retire.

A 457 Rollover allows you to rollover funds from a 457 into another retirement savings plan, if you change jobs and end up in a situation where a 457 plan is not offered. You also have the option to rollover your current 457 into another 457 if it is offered through your new employer. Most people elect to rollover their 457 into an IRA for the advantages it has to offer, but everyone’s financial situation is different. Whatever you rollover into, it keeps your money saved for retirement, instead of forcing you to leave your investments with your previous employers plan or taking cash out payment.

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