I’m finally clawing my way back into positive accounts after **** went south a few years back. I have a separate 401k aside from my org’s retirement and my own savings account. Idk why today but today I linked the account to my app to monitor it. It came with a 457 account too…$0 but it got me asking what’s this?! apparently it’s like a government employee 401k..Is that correct? since I’m nowhere close to being able to max my 401k contributions is there really a point in trying to fund this as well?
I personally would only focus on funding one account if you're not maxing out. Only reason to change would be if there are better performing funds within the 457 account (but I doubt that).
AI response: When It Makes Sense to Contribute to Both Consider contributing to both if: You can comfortably save beyond the annual limit of just one plan. Your 401(k) offers a match (always prioritize at least enough to get the full match). You want flexibility: 457 withdrawals after leaving the job have no early penalty, which can be useful if you retire early. You’re in a high tax bracket now and want to maximize pre-tax deferrals. Here’s a common prioritization strategy: 401(k) up to employer match → free money. 457 contributions → if you might retire early or value flexible withdrawals. 401(k) beyond the match → if you still have more to save. Roth IRA (if eligible) → for tax diversification. If you can afford it, yes—contributing to both is often a smart move, especially if: Your 401(k) offers a match, and You want to save more than $23,000/year, or You might retire early and value the 457’s flexibility.
Find out if your company offers a ROTH 401(k). Turns out mine does and I didn't find out about it until a few years ago. I started contributing to it instead of my regular 401(k).
