Deciding between 403(b), Roth 403(b), Roth IRA—insight?

[rickyrecumbant]

Hi Everyone, just wondering what the differences, benefits, and detriments are between a 403(b), Roth 403(b), and Roth IRA. I'm making some retirement savings decisions, and am knowledgeable about their general differences and features, but would you share what you've learned about each?

Did you choose one and later wish you'd chosen another? Did you roll one over into another and should have gone about it differently? Did you choose more than one, and it was especially advantageous? Why?

 

[into_the_wilderness]

@rickyrecumbant See What to do with my money on the sidebar --------------->

 

[rickyrecumbant]

@into_the_wilderness This is really nice, thank you

 

[luch1984]

@rickyrecumbant There are tradeoffs between 403(b) and Roth 403(b) depending on your income. If your employer offers both you may be able to have both and then split your contributions between the two for diversification.

IRA has lower contribution limits and phase-out concerns depending on MAGI.

Tax planners would make different recommendations based on your income level, and your ability to max. In the broadest context, having both (403(b)s) is desirable as it allows you to make future choices based on the future tax environment. Rollovers are common in this context.

 

[rickyrecumbant]

@luch1984 thank you!