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 Features
403(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 age
No
Yes
Yes
Total fees
Can be as high as 5%
Can be as high as 5%
.65%-1.55%
FINRA Investor Alert on Annuities
Almost always an annuity
Almost always an annuity
Not an annuity
Wrap fees
Almost always
Almost always
None
Advice and guidance to participants on asset allocation
