Question for the finance bros

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:

1. 401(k) up to employer match → free money.
   
   
2. 457 contributions → if you might retire early or value flexible withdrawals.
   
   
3. 401(k) beyond the match → if you still have more to save.
   
   
4. 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.
  

 

Isnt 457 deferred comp

 

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).