Traditional vs Roth 457b and employer retirement account choices
Choosing between pre-tax and Roth employer options like a 457b leaves people second-guessing past contributions and struggling to decide how to manage or combine multiple accounts across past and current employers. Without clear guidance, they are left wondering whether to roll over balances, diversify existing holdings, or pick a different tax bucket altogether.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1converting traditional accounts to Roth accounts and paying taxes later
- 2using comparison websites or community rules of thumb like the Prime Directive
- 3Keeping accounts separate in different institutions like E*Trade and employer-sponsored plans
- 4Holding overlapping index funds and target-date funds across multiple portfolios
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I maxed the 457b over the last 10years but now wish I had done the 457 Roth instead.”source ↗
“I wish I had a 457 Roth.”source ↗
“Hi all, looking for some feedback/advice - 36yo female, $100k annual salary and here’s my current retirement portfolio:”source ↗
“Is it helpful to have these rollover accounts in a separate account or should I just combine them with my current employer account?”source ↗
“If I keep them in E*Trade, should I diversify the investments (ex: more than VTI & VFFVX)?”source ↗
Where this came up
People with this problem also raised
- 4How to handle 401(k) contributions and employer matches when changing jobs
- 18What funds and allocations should I pick for a new Roth IRA?
- 6Should I invest extra savings in a brokerage account or a Roth IRA?
- 2Pension vs 401k: how to choose when starting a new job?
- 13Should I do a Roth conversion or stick to traditional 401k?
- 5Why can't I withdraw my 401k after leaving a job?