10k in Roth IRA vs 403 b

Submitted by Character_Guess_4258 t3_zyeeex in personalfinance

Hi! Piggy backing off my last post - I have about 10k of savings left after putting money in a hysa. I’m currently only putting 5% in my 403b, (company matches 30% of 5% my annual salary) With my left over money should I be adding it to the 403b or open Roth IRA and max out the contribution for the end of 2022?

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legitimatejonah t1_j25jvdp wrote

You most likely don’t have time do add to the 403(B) plan for the 2022 year if you do you should add it their first. However if you don’t you should open up a Roth IRA with and big brokerage eg. Fidelity, Vanguard, Schwab, TDAmeritrade you should then max out the contributions. If you are not an experienced investor you can always invest in a target date fund just like your 403(b) plan should be invested in eg with vanguard a Vanguard Target Date 20__ (insert year of retirement)

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pensburgh256 t1_j271ep4 wrote

Depends on what the fees are for the 403b. But as another post mentioned it's likely too late for any 403b changes.

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Character_Guess_4258 OP t1_j25c3bc wrote

Also wanted to add that I know you have to invest the money after adding it to the IRA (don’t know much about it yet). Would it still be worth rushing to adding it before the end of the year if I haven’t fully educated myself on it yet?

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legitimatejonah t1_j25k2q9 wrote

You can add to a traditional or Roth IRA until April 18th of 2023 (tax day)! So you could wait to max out until later into next year but if you do make sure you make the contribution for 2022 and not 2023.

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legitimatejonah t1_j25k9wk wrote

May I also ask who is your 403(b) Plan administrated by? Do you have a choice of providers because 403(b) plans are notorious for having high fees with administrators like Life Insurance Companies.

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Character_Guess_4258 OP t1_j27sdhh wrote

Transamerica

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legitimatejonah t1_j28renr wrote

Do you have any other choices or is this your only choice?

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legitimatejonah t1_j28s47i wrote

Do you have any other choices or is this your only choice? TransAmerica isn’t horrible but they aren’t amazing they are known to have some high fee products and funds.

Even if you don’t you should still try to raise the contributions on your employer sponsored 403(b) plan. If you have the ability contributing 10-15% towards retirement would be good. If you can’t do that all at once start small an increase as you can.

If you do have other choices for your plan administrator you may consider switching to Aspire Financial Services (non advisor) CalSTRS Pension2 (only in California) Fidelity Investments MissionSquare (formerly ICMA-RC) T. Rowe Price TIAA Vanguard WEA Member Benefits (Wisconsin)

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