Maxed out my 403b For the First Time

[4n6]

I am lucky in my job because I actually can enroll in two different retirement plans. I am mandated to contribute 11% of my salary to the equivalent of a 401k plan. However, I also opened up a 403b a few years ago on top of that. Two weeks ago, I decided to up my contribution to the max. Additionally, I also just found a got a promotion and raise that kicks in September. So actually continuing to make the max contribution should be easier. I am not at the savings rates of others here, but we are slowly getting there. Next stop 500k in investments.

[NoStacheOhio]

403b is a 401k equivalent, do you mean a defined contribution pension? Double check your contribution limits, because you're still limited to $18k across 401k and 403b plans.

[facepalm]

Your 401(k) and 403(b) have an aggregate limit, so if your max contribution is $18K per year you can split the total between the two any way you choose to slice and dice. When you hit age 50 you can contribute an additional 6K catch up if the plan allows it. Also, some plans allow an additional 3K catch up contribution once you hit 15 years of service. Your plan administrator can fill you in.

[rpr]

I would guess that the OPs equivalent of a 401k plan is not really a 401k but a mandatory pension type plan. Thus the 401k/403b contribution limits would not apply to that plan. 

[4n6]

I would guess that the OPs equivalent of a 401k plan is not really a 401k but a mandatory pension type plan. Thus the 401k/403b contribution limits would not apply to that plan.

Actually, you can have a 401(a) and 403b at the same time. The 401a is the alternative to our pension plan. It is where I must put my mandated contributions (I chose not to do our pension plan). Plus, I can enroll in both a 403b and a 457 plan. I don't have enough disposal income to do the 457, but maxing the 403b is a step in the right direction, plus I am mandated to contribute 10% of my income to our 401(a) or pension. I chose the 401(a). We call it the Optional Retirement Plan.

[NoStacheOhio]

I would guess that the OPs equivalent of a 401k plan is not really a 401k but a mandatory pension type plan. Thus the 401k/403b contribution limits would not apply to that plan.

Actually, you can have a 401(a) and 403b at the same time. The 401a is the alternative to our pension plan. It is where I must put my mandated contributions (I chose not to do our pension plan). Plus, I can enroll in both a 403b and a 457 plan. I don't have enough disposal income to do the 457, but maxing the 403b is a step in the right direction, plus I am mandated to contribute 10% of my income to our 401(a) or pension. I chose the 401(a). We call it the Optional Retirement Plan.

Got it. I have a similar setup, minus the 457. So those three account types all have separate limits, while 403b and 401k accounts have aggregate limits, which is where we were getting confused.

What kind of employer do you work for? If it's a governmental 457, consider contributing to that rather than maxing out your 403b, just because it's more flexible for early withdrawals (still reduces your taxable income the same way though).