#50: The Finance Flash Go Podcast | Important Topics About Money | 457 Accounts

Today on the Finance Flash Go! podcast, we are going to talk about 457 accounts! A 457 investment account is another tax advantaged retirement account. It comes in two flavors: governmental 457 and non-governmental 457. Governmental 457 accounts are more common and cater to local and state public workers rather than for-profit employers like 401(k)s. Non-governmental 457s are available to certain tax-exempt non-governmental institutions. They are similar but, in general, governmental 457s are a bit better. Like 401(k)s, 457s allow pre-tax contributions that grow within the account and are taxed upon withdrawal. The 2020 contribution limit is $19,500. While employer contributions are possible, the total limit stays $19,500. This means that is your employer will contribute $10,000, you can only contribute $9,500. The disadvantage again is that you can only withdraw from this account without a 10% penalty at age 70½ or for other qualified emergencies, etc. Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!