Franklin Templeton 457(b) Plan - Reviews, Benefits, Fees & Ratings

Do you want to save for retirement? If so, you may be considering investing in a Franklin Templeton 457(b) Plan. This type of plan can be a great way to save for retirement, but it's important to understand the benefits, fees and ratings before investing.

In this article, we will provide a complete guide to the Franklin Templeton 457(b) Plan. We will cover reviews, benefits, fees and ratings so that you can make an informed decision about whether or not this plan is right for you!

What is a Franklin Templeton 457(b) Plan?

A Franklin Templeton 457(b) Plan is a retirement savings plan offered by the investment company Franklin Templeton. The plan allows employees of participating employers to save for retirement on a tax-deferred basis.

How Does a Franklin Templeton 457(b) Plan Work?

A Franklin Templeton 457(b) Plan works by employees contributing a portion of their paycheck into the account. The funds in the account can then be used for retirement expenses, such as a down payment on a house or income during retirement.

The account is tax-deferred, meaning that the money in the account grows without being taxed until it is withdrawn.

What Are The Key Features of a Franklin Templeton 457(b) Plan?

There are a few key features that make a Franklin Templeton 457(b) Plan stand out from the rest.

First, there is no vesting period. This means that you can take your money out at any time without having to wait for a certain amount of time to pass.

Second, there is no limit on how much you can contribute. You can contribute as little or as much as you want.

Third, your money grows tax-deferred. This means that you won't have to pay taxes on the growth of your investment until you withdraw it.

Finally, the fees are very reasonable. You will only be charged a small annual fee and there are no other hidden fees.

What Commissions and Management Fees Does a Franklin Templeton 457(b) Plan Come With?

As with most things in life, there is no free lunch. The same goes for your 457 plan. The good news is that the fees are relatively low when compared to other investment options. Here is a breakdown of the typical fees you can expect:

Enrollment fee

This is a one-time fee charged when you first set up your account. It is typically a few hundred dollars.

Maintenance fee

This is an annual fee charged to keep your account active. It is usually a few hundred dollars.

Contribution fees

These are fees charged on the money you contribute to your account. They are typically a few percent of the amount you contribute.

Management fees

These are the fees charged by the investment manager to manage your account. They are typically a few percent of the assets in your account.

Exit fees

Some plans charge exit fees if you withdraw your money before a certain age. These fees can be a few hundred dollars.

What Are The Advantages of a Franklin Templeton 457(b) Plan?

The biggest advantage of a Franklin Templeton 457(b) Plan is that it offers tax-deferred growth potential. This means that your investment can grow over time without being subject to taxation until you withdraw the money. Additionally, there are no contribution limits, so you can invest as much as you want.

Another advantage of a Franklin Templeton 457(b) Plan is that it offers a wide variety of investment options. This can be helpful if you're looking for diversification in your portfolio. You can choose to invest in stocks, bonds, mutual funds, and more.

Finally, a Franklin Templeton 457(b) Plan can provide you with financial security in retirement. If you're worried about outliving your savings, this type of plan can give you peace of mind. You can use the money to cover expenses such as healthcare or long-term care.

What Are The Disadvantages of a Franklin Templeton 457(b) Plan?

The disadvantages of a Franklin Templeton 457(b) Plan are that it is expensive and there are better options available.

The expense ratio for the Franklin Templeton457 Plan is 0.81%. This means that for every $100 you have invested, $0.81 will go towards fees. When compared to other options, this is relatively high.

There are also better options available when it comes to saving for retirement. For example, the Vanguard 500 Index Fund has an expense ratio of only 0.14%. This means that you would save more money in the long run by investing in this fund instead.

What Are Some Alternatives to a Franklin Templeton 457(b) Plan?

If you're not quite sold on the Franklin Templeton 457(b) Plan, there are a few other options to consider.

One alternative is the Fidelity Investments Cash Management Account. This account doesn't have any fees and offers a higher interest rate than most checking and savings accounts.

Another option is the Charles Schwab Bank High Yield Investor Checking Account. This account has no monthly fees and offers unlimited rebates on ATM withdrawals worldwide.

How Do You Open a Franklin Templeton 457(b) Plan?

To open a Franklin Templeton 457(b) Plan, you must first be employed by an eligible employer. Once you are employed, you can contact Franklin Templeton to set up an account.

After your account is established, you will need to make contributions to the plan. Contributions can be made via payroll deduction or direct deposit. When making contributions, you will need to specify how your contributions should be invested.

What is The Minimum Amount Required to Open a Franklin Templeton 457(b) Plan?

The minimum amount required to open a Franklin Templeton 457(b) Plan is $25. There is no minimum balance required to maintain your account, and you can make contributions at any time.

What Are The Franklin Templeton 457(b) Plan Contribution Limits?

The Franklin Templeton 457(b) Plan contribution limits are pretty high. For 2019, the elective deferral limit is $19,000. If you're 50 or older, you can contribute an additional $6000 as a catch-up contribution. Employers can contribute up to 100% of your salary, up to a maximum of $56,000.

So, if you're maxing out your contributions, you and your employer could be putting away a total of $75,000 per year.

The contribution limits are one of the things that make the Franklin Templeton 457(b) Plan so attractive. If you're looking to save for retirement, this plan is definitely worth considering.

What Are The Eligibility Requirements for a Franklin Templeton 457(b) Plan?

To be eligible to participate in a Franklin Templeton 457(b) Plan, you must be an employee of a participating employer. You must also be at least 18 years old and have completed any applicable probationary period required by your employer.

Do You Pay Taxes On a Franklin Templeton 457(b) Plan?

The Internal Revenue Service (IRS) taxes most 457 plans as deferred compensation arrangements. This means that you won't pay taxes on your contributions or earnings until you withdraw the money from the plan.

Withdrawals are taxed as ordinary income, and if you're younger than 59½ when you make the withdrawal, you may also be subject to a federal penalty tax.

When Can You Withdraw Money From a Franklin Templeton 457(b) Plan?

You can start withdrawing money from your account once you reach retirement age, which is typically 55 or older. However, if you leave your job before reaching retirement age, you may be subject to an early withdrawal penalty.

How Does a Franklin Templeton 457(b) Plan Compare to a 401K?

A 457 plan is a great retirement savings option for employees of state and local governments, as well as tax-exempt organizations. However, how does it compare to a 401K?

For starters, a 457 plan has some significant advantages over a 401K. For one, you can contribute more money to a 457 plan on an annual basis. In 2019, the contribution limit for a 457 plan is $19,000, compared to just $18,500 for a 401K.

Another advantage of a 457 plan is that you can access your money before retirement age without paying any penalties. With a 401K, you typically have to pay a hefty penalty if you withdraw funds before age 59½.

Finally, a 457 plan offers more flexibility when it comes to distributions in retirement. With a 401K, you're generally required to start taking distributions at age 70½. With a 457 plan, you can choose to start taking distributions at any time after reaching retirement age.

What Assets Are Available With a Franklin Templeton 457(b) Plan?

Franklin Templeton offers a wide variety of asset classes with their 457 plans. This includes stocks, bonds, mutual funds, and more. There is something for everyone with a Franklin Templeton 457 plan.

Why Do People Use a Franklin Templeton 457(b) Plan?

The primary reason people use a Franklin Templeton 457 plan is to save for retirement. The sooner you start saving, the more time your money has to grow.

With a 457 plan, you can save on a pretax basis, which means your contributions come out of your paycheck before taxes are taken out. This lowers your taxable income and can result in a tax deduction.

Another reason people use a 457 plan is that the money grows tax-deferred. This means you won't have to pay taxes on any of the earnings until you withdraw the money, which usually happens during retirement. And if you're in a high tax bracket, this can be a significant advantage.

Finally, some 457 plans offer a matching contribution from your employer. This is free money that can help you reach your retirement savings goals even faster.

Does a Franklin Templeton 457(b) Plan Accept Rollovers?

Yes, a Franklin Templeton 457(b) Plan can accept rollovers from other eligible retirement plans, including:

• IRAs
• 401(k)s
• 403(b)s
• 457(b)s

If you're thinking about rolling over your retirement account to a Franklin Templeton 457(b) Plan, there are a few things you should keep in mind.

First, you'll need to make sure that the account you're rolling over is eligible. As we mentioned, IRAs, 401(k)s, 403(b)s, and 457(b)s are all eligible.

Second, you'll need to contact the Franklin Templeton 457(b) Plan administrator to initiate the rollover process.

Third, you'll need to make sure that you don't incur any penalties or taxes on the account you're rolling over.

Fourth, you'll need to make sure that the assets in your account are properly diversified.

Fifth, you'll need to make sure that you're comfortable with the fees and expenses associated with the Franklin Templeton 457(b) Plan.

How Long Does It Take to Transfer to a Franklin Templeton 457(b) Plan?

The good news is that it doesn't take very long to transfer your funds to a Franklin Templeton 457(b) Plan. The process is relatively simple and can be done in just a few steps.

First, you'll need to contact your current plan administrator and request a transfer form. Once you have the form, you'll need to complete it and send it back to your current plan administrator.

Once the form is received, the transfer process will begin. It typically takes about two weeks for the funds to be transferred to your new account.

How Do You Put Money Into a Franklin Templeton 457(b) Plan?

To make contributions to your 457 plan, you'll need to contact your employer's human resources department. They will have the information and forms necessary to set up payroll deductions.

You can choose how much money you want to contribute to your 457 plan each pay period, but there are contribution limits set by the IRS. For 2019, the contribution limit is $19,000.

If you're age 50 or older, you can make catch-up contributions of up to $6000 per year. These catch-up contributions are in addition to the regular contribution limit.

Can You Open a Franklin Templeton 457(b) Plan For a Child?

Yes, you can open a Franklin Templeton 457 plan for your child. However, there are a few things to keep in mind before doing so.

First and foremost, your child must be under the age of 18 in order to qualify for this type of account.

Secondly, you will need to name a beneficiary for the account. This can be anyone you choose, including your child.

Lastly, keep in mind that contributions to a Franklin Templeton 457 plan are not tax-deductible. However, the earnings on these investments will grow tax-deferred until your child withdraws the money (usually when they reach retirement age),