Personal Finance and Investing

Forgive me if I say things you are already aware of, but perhaps then for the edification of others!

Even though your employer doesn't match, you still are gaining the advantage of pre-tax contributions, plus the amount you can contribute to your 457(b) plan is considerably higher than the annual IRA limits.

If you currently have a 457 plan and are contributing to it, in your case the old advisor in me (!) would say to just place any extra you can afford into the Roth. The only way I would change that is if the investment options in the 457 sucked so badly that the investment freedom a Roth offers makes more sense.

You may be aware that the rules governing 457(b) plans and 401(k) plans are VERY similar.

Unfortunately I have to hit the road in a while, or I would do some reading for you and get you a more complete answer. Suffice to say that on the surface, it seems you are on the right track. There are a few ins and outs, so to speak (does your wife also participate in an employer plan, for instance) that come into play, but for the most part, it is always wisest to take advantage of employer plans even if they don't match. The money is gone in a sort of painless way, it reduces your tax burden and as long as you look at the statements and make appropriate changes occasionally, those plans tend to work well. Place any extra you can afford into a Roth and you're good!

Hope that helps a little.