2006-12-19 14:29:53 · 2 answers · asked by Z 1 in Business & Finance ➔ Investing
If the 457 plan sponsor (your employer) matches your contributions, it is likely the better option. If not, the Roth IRA. If the match is small, only put in what they will match and fund the Roth IRA with the rest of what you want to save.
(aside: if your income is too high to make Roth contributions, fund the 457 to the max).
2006-12-19 15:02:57 · answer #1 · answered by kcincon 3 · 0⤊ 0⤋
If there are no employer contributions, a Roth is best.
Why? you pay taxes once, and never again. On a 457, the tax is deferred, isn't it? So you will pay taxes on the principal AND the earnings and appreciation.
Otherwise, max out the 457, like the man says, because the employer is chipping in. That's free money. Free is everyone's best price.
2006-12-19 23:30:16 · answer #2 · answered by Richard E 4 · 0⤊ 0⤋