Since 2002, a best practice for K-12 supplemental pension plans includes using a 457(b) plan as an additional, supplemental savings option. A 457(b) plan allows complete access to funds at retirement, with no penalty –regardless of age.

With The Wise Choice for Educators 403(b)/457(b), you enjoy access to funds with potentially lower total fees than some variable annuities – a standard feature in 403(b) plans.

You also receive ongoing, extensive access to educational guidance about how to allocate your assets, according to your risk tolerance and investment time horizon.

Important Features403(b)Standard 457(b)The Wise Choice 457(b)/403(b)
Can you access funds at retirement without the 10% early withdrawal penalty, regardless of ageNoYesYes
Total feesCan be as high as 5%Can be as high as 5%.65%-1.55%
FINRA Investor Alert on AnnuitiesAlmost always an annuityAlmost always an annuityNot an annuity
Wrap feesAlmost alwaysAlmost alwaysNone
Advice and guidance to participants on asset allocationMay be providedMay be providedAlways provided
Contingent Deferred Sales Charge (Surrender Charge)Almost alwaysAlmost alwaysNone
Can you access funds at 59½ while still employed with current employer?YesNoYes