Congrats on being able to retire in October 2016! Based on the limited amount of information you provided; Yes I would continue to max your 457-B plan contributions for 2016 because it will lower your income tax liabilities in 2016. When you withdraw the accumulated 457-b funds in later years 2017 and after, you should be at an assumed lower marginal income tax rate. Thus, you generate the tax savings at a lower rate and are able to enjoy the deferred earning growth. Remember to co-ordinate all future 457-B, IRA or 401-k withdrawals to minimize your combined annual tax liabilities over your retirement years. That is critical to maximize your tax deferral benefits!
Robert Riedl, CPA, CFP, AWMA Director of Wealth management
Endowment Wealth Management www.EndowmentWM.com
In addition, that's additional savings for retirement that in most cases would otherwise have been consumed so you'll have that much more in your retirement plan
Yes you should keep contributing because this means that you are accustomed to living on less because you are saving. This has a ripple effect in that you save more and that total may last longer because you are living on less. It all comes down to maintaining a standard of living. The lower you keep that, the less you need to sustain it. Savings is one of the best ways to keep your standard of living from getting too high to sustain once retired.
The answer is probably....but as with so much in financial planning - it does depend on the individual circumstances. If you haven't already sat down with a financial planner to estimate your cash flow / income needs in retirement, now is probably a good time to do so. There are a few cases where it might NOT make sense to max out your 457. For instance, if pension, social security, and future required distributions (after 70..5) will be more income than you need to live on - then additional tax deferral may be too much of a good thing. A Certified Financial Planner could help you with these questions.
James and Larry are right. Nobody can give you a qualified and definite answer without looking at your particular financial situation, expenses and obligations, lifestyle and other means of income. You should consult a financial planning professional for a complete retirement financial plan and not seek advice on-line unless it's just general in nature. If a person that is retired asks on-line if they should buy a Ferrari, what would you tell them without knowing who they are and what their financial situation is? For someone that has a total of $300K and wants to blow it all off in a Ferrari the answer is NO! but if that person is Billionaire Ted Turner the answer is completely different... I hope this helps.