Kentucky Deferred Comp is on Your Side
October 4, 2022
"I'm feeling lucky like a horse in Kentucky" is one of my favorite lines from the song Codeine by one of my favorite bands, Weed Patch. If I'm a Kentucky educator or state employee I would be feeling lucky for having Kentucky Deferred Comp available.
What is Kentucky Deferred Comp?
Frankly it's one of the most impressive state-run supplemental savings programs available to public school teachers that we have come across. I say programs because it's not just an impressive 457(b). It's also an impressive 401(k), Roth IRA and traditional IRA. Both the 457(b) and the 401(k) plans are automatically available to all Kentucky school employees. Unlike New York state teachers who are eligible for a fantastic 457(b) plan but have to practicallly beg most school districts to make it available.
Inside the Numbers
- 80,000 participants
- 26,000 public school participants
- $4 billion of assets under management
- Nationwide is the record keeper
- Vanguard target date funds charging 0.08%
- Vanguard Institutional Index fund charging 0.02%
- Solid offerings from American Funds, Dodge and Cox, and Fidelity among others
- Plan fee holidays! I'll say this again: Plan fees are routinely dropped
- No additional plan fees once combined balance hits $125,000
- No cost financial planning with a CFP®
No Need for a 403(b)
If I'm a K-12 school employee in Kentucky there is exactly ZERO reasons to contribute to a 403(b). The rest of the country should be so lucky. Note: link below to our podcast on this plan.
Related Podcast:
Kentucky Deferred Comp is on Your Side Educators and state employees have access to multiple excellent, low-cost retirement savings vehicles. Listen Now »