Q:  Everything I thought I knew about my retirement plan is wrong.  I thought I had 403(b), but it turns out I have a 457.  When I started, my co-workers said the employer matches - but they don't.  I'm really confused about this retirement plan, and retirement plans in general.  How does what I have differ from a 401(k)? 

A:  Your question is short, but chock-full of inferred information.

First, shame on your employer's HR department and your supervisors for not making it perfectly clear what kind of retirement plan you have.  This should have been made clear from the very first day.  Since you've been contributing to the retirement plan for however long you've been employed there, it would have been nice to know what kind of plan.

Having said that, it is the responsibility of every employee to become educated on their employer's retirement plan prior to contributing.  By not doing so, you've basically bought a surprise in a brown paper bag.  You'll have to live with what's behind Door #2.  But all is not lost.  You can still educate yourself on the best way to manage your current retirement plan.

While most (if not all) employer-sponsored employment plans provide the benefit of tax-deferment until you withdraw, there are some differences between the plans.  While the topic of retirement plans is too big to fully handle in one post, here are a few of the most common employer-sponsored retirement plans and some very good advice on how to manage them:

401(k) - Defined here, with great info here, here and here.

403(b) - Defined here, with great info here, here and here.

457 - Defined here, with great info here, here, and here.

We will continue discussing the various types of retirement plans, what they are, how they work and the best strategies for managing them over the course of the next few Fridays.

IN THE CARAVAN: Be sure of what kind of retirement plan your company offers before contributing.

NEXT FRIDAY: Retirement Plans: Individual Retirement Plans

Want more Q & A? Check out these posts and The Lion's Pride section of WildJobSafari.com!

Check out last Friday's post on early retirement.

Sponsored by Indeed Jobs