New attending for non-profit: Should I max Employer 403(b) and 457(b)?

[Yankeyesfan]

I recently graduated residency and am going for my first job. I will work for a non-profit that offers the following for retirement: 1) 403(b): Can contribute 19k/yr and employer will provide 50% contribution match up to 4% of income per pay period 2) 457(b): Can contribute 19k/yr with no matching. The plans are administered by Prudential.

My question is this: in general, should I still max out both of these even though they are administered by an insurance company that may be itself investing in annuities rather than investments that would get a better rate of return like mutual funds? Or should I try to find my own retirement plan outside of this? I anticipate making about 230k and would ideally like to contribute 20% yearly to retirement in some form. Thanks in advance for your help.

[JBME]

yes, most likely max both but for the 457 it depends on your investment options and/or the distribution options as well as if your company is financially stable.

The max you can contribute is $19,500 to each plan, not $19k.

Doesn't matter who runs or holds your 401k. What matters are the investment options. Post your investment options here for each plan along with the expense ratio and I'm sure a lot of people can give you good feedback. You cannot find your own retirement plan like an individual 401k if you are a W2 employee with no 1099 income (which sounds like your scenario)

[VentAlarm]

Look into your 457b. Not all plans are alike. Big question is governmental vs. nongovernmental and look at distribution options. If good, should probably use it.

Look for whatever funds are good, round out with back door Roth IRAs for you (and spouse if married).

[childay]

I recently graduated residency and am going for my first job. I will work for a non-profit that offers the following for retirement: 1) 403(b): Can contribute 19k/yr and employer will provide 50% contribution match up to 4% of income per pay period 2) 457(b): Can contribute 19k/yr with no matching. The plans are administered by Prudential.

My question is this: in general, should I still max out both of these even though they are administered by an insurance company that may be itself investing in annuities rather than investments that would get a better rate of return like mutual funds? Or should I try to find my own retirement plan outside of this? I anticipate making about 230k and would ideally like to contribute 20% yearly to retirement in some form. Thanks in advance for your help.

Almost certainly the plans will have mutual funds to invest in and not annuities, despite being offered by Prudential. As noted you need to do more research on the investment lineup and also the 457B

[jfoxcpacfp]

Are you married and does your spouse work? That will increase your tax bracket, in which case, your 457b contributions become more valuable. You need a thorough understanding of the provisions of this plan, however, especially the required distribution structure at separation from service. Can go from 100% distribution in the first yr after SOS to the ability to begin at age 72.5, may are in-between these extremes, so dig (probably won't get an answer on your first try). Also, be aware that the 457b for a NPO can not be r/o to a TIRA, 401k, or 403b.