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403b AND 457

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  • #16
    Originally posted by The White Coat Investor View Post

    Yes. Make sure you look carefully at the 457 (investment options, withdrawal options, stability of employer, whether it's governmental or non governmental) before deciding whether or not to use it.
    Very important. This sounds like a NG457 and an employer contribution is basically no one has ever heard of this.
    • The money is not legally yours (including your contributions). You can lose it all if the employer goes bankrupt.
    • You can only roll it over to another NG457, else limited withdrawal options.
    • The withdrawal options can result in a tax bomb greater than the match. Taxed at high marginal tax rate when withdrawn.
    If this is a NG457, it sounds fishy. Do your vetting.