Depending on where you work, you may have the ability to invest in a 457 plan. 457 plans are another type of retirement account where money can grow tax free similar to a 401K or 403B but there are some important differences compared to 401Ks and 403Bs. Depending on your employer, it may not be a good idea to invest within their 457 plan. Generally, if you work for a government employer, like a county hospital, then you’re safe investing in a 457 plan. If you work for a community hospital, you’ll need to be very confident in the hospital’s financial situation before contributing to a 457 plan. This episode discusses the nuances of 457 plans and how they different from other retirement accounts.
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