457(b) vs. 401(k) Plans: Benefits & Differences
to a retirement account. That means the money you contribute isn’t counted as taxable income for that year, therefore reducing your income tax liability. Instead, the funds can grow tax-free over the course ... you contribute. Then, when you withdraw those funds, you pay no taxes on the money as long as you are over age 59½ and you made your first Roth contribution to the account at least five years before ... your normal retirement age. If you declare you plan to retire at age 70, for example, you can essentially make double contributions in the three years prior to the year you turn 70, subject to certain