FAQs

Being on track for retirement means more than reaching a certain savings balance. Your pension, retirement accounts, savings, Social Security benefits, expected expenses, taxes, and retirement timeline all play a role. A personalized retirement review can help you estimate your future income, identify potential gaps, and determine what adjustments may be needed.

Your potential retirement date depends on whether your pension, retirement accounts, savings, and Social Security benefits can support the lifestyle you want. Health care costs, taxes, pension elections, market conditions, and your comfort level with different income sources should also be considered. A retirement income analysis can help you understand your options and the tradeoffs involved.

Both 403(b) and 457 plans allow eligible employees to save for retirement through payroll deductions, and each may offer pre-tax or Roth contribution options. However, their withdrawal rules can differ. For example, eligible distributions from a governmental 457(b) plan after separation from service generally are not subject to the additional 10% early-distribution tax, while distributions from a 403(b) may be unless an exception applies. Your employer’s plan rules and your individual circumstances should be reviewed before making a decision.

Some educators and school employees may be eligible to contribute to both a 403(b) and a 457 plan when both are offered by their employer. Using both may provide an opportunity to increase retirement savings and create additional flexibility. Eligibility, contribution limits, plan provisions, and personal cash flow should be reviewed before deciding how much to contribute.

Contributing to both plans may make sense, but the right approach depends on your cash flow, tax situation, retirement timeline, savings goals, and the features of each plan. Some people may choose to prioritize one plan first, while others may benefit from dividing contributions between the two. A review can help you decide how each plan fits within your overall retirement strategy.

Purchasing service credit may increase your pension benefit or help you become eligible to retire earlier, depending on your pension system. Whether it is worthwhile depends on the purchase cost, expected increase in benefits, retirement date, available cash flow, funding method, and how long you expect to receive the benefit. Reviewing the cost and potential benefit together can help you make a more informed decision.

If you retire before beginning Social Security, you may need a temporary income strategy for the years in between. Potential sources could include pension income, 403(b), 457 or IRA withdrawals, taxable savings, cash reserves, or part-time employment. The order and timing of withdrawals should be evaluated alongside taxes, health care, and other expenses.

Pre-tax contributions may reduce your taxable income today, but withdrawals are generally taxable in retirement. Roth contributions are made with after-tax dollars, while qualified withdrawals generally may be received tax-free. The appropriate approach depends on your current and expected future tax situation, income, age, retirement timeline, plan provisions, and financial goals. Some individuals may decide to use a combination of both.

Yes. We work with first responders and their families, including police and fire professionals who may have specialized pension, retirement-plan, income-timing, and survivor-benefit considerations. We help clients understand how these benefits fit with their retirement accounts, savings, insurance, taxes, and long-term goals.

The first step is an introductory conversation about your goals, concerns, and financial questions. We will learn what you are trying to accomplish, explain how our team may be able to help, and discuss possible next steps. This could include retirement planning, reviewing pension and workplace benefits, organizing accounts, or preparing for an upcoming financial decision.

Securities offered through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA/SIPC. Annuity and insurance products offered through Equitable Network, LLC.. Triplecrown Wealth Management, Equitable Advisors and its associates do not provide tax or legal advice. Individuals may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. The information in this FAQ is not investment or securities advice and does not constitute an offer.  Triplecrown Wealth Management is not a registered investment advisor and is not owned or operated by Equitable Advisors or its affiliates.

PPG-9208530.1 (10/26)(Exp. 10/30)