MrNickel
Dryer sheet wannabe
- Joined
- Jun 19, 2015
- Messages
- 21
I'm stuck on where to send my savings first. I've been deferring to a traditional 457(b) which according to its website the money is protected from being raided by the City should bad things happen. I've needed the tax savings, but now I'm thinking of venturing out into post-tax accounts.
There is a ROTH 457 available. I like this one because 1) it's so easy from my paycheck to account and 2) I can take distributions upon separating from city service without worrying about 10% IRS penalty on earnings before 59 1/2. I don't like that there is RMD, unlike the ROTH IRA.
I'm leaning towards the ROTH IRA, however I plan on retiring at 55 and although I don't believe I'll be needing distributions (I'm covered by a healthy pension) just in case I don't want to be restricted by any SEPP.
My other thought is to use a brokerage and just treat it as a normal account. I have enough discipline not to raid it. I don't like that I'd be taxed on dividends though. I've used Robinhood which doesn't have any trading fees. I've used it and am very pleased. Turn around on sales and depositing takes about a week, which is where I'm sure they make their $ from, but I'm not worried about that considering my time horizon is 20 years.
There is a ROTH 457 available. I like this one because 1) it's so easy from my paycheck to account and 2) I can take distributions upon separating from city service without worrying about 10% IRS penalty on earnings before 59 1/2. I don't like that there is RMD, unlike the ROTH IRA.
I'm leaning towards the ROTH IRA, however I plan on retiring at 55 and although I don't believe I'll be needing distributions (I'm covered by a healthy pension) just in case I don't want to be restricted by any SEPP.
My other thought is to use a brokerage and just treat it as a normal account. I have enough discipline not to raid it. I don't like that I'd be taxed on dividends though. I've used Robinhood which doesn't have any trading fees. I've used it and am very pleased. Turn around on sales and depositing takes about a week, which is where I'm sure they make their $ from, but I'm not worried about that considering my time horizon is 20 years.