403(b) account transfer to Vanguard - Traditional or Roth IRA

[GoConfidently]

Newbie question. I realize this has probably been answered before, but I need some specific guidance and I'm having trouble making a decision.

I currently have about $28,000 in a traditional, annuity based 403(b) account. I contribute a small about each pay period, but have reduced contributions due to an aggressive student loan debt repayment schedule. I would like to transfer this account to Vanguard for a few reasons and have already decided that Vanguard is the way to go. I'm stuck on whether or not to go to a traditional or Roth IRA though. In the next few years (3-5) I might enter a higher tax bracket, but in the next 5-10 I anticipate moving into a lower tax bracket. I'm having trouble deciding which one is right for me. If I move out of state (as anticipated in the next 5-10), I will need to move my state based retirement account as well. My gut says go to a traditional and roll over to a Roth later, when I'm closer to FIRE. Does that sound right?

[forummm]

It sounds like you still have the job connected to the 403b. If so, does your 403b allow in-service withdrawals? If not, then you need to wait until you leave that job before you can move the funds to Vanguard.

[GoConfidently]

In-service withdrawals are allowed

[forummm]

Will you be in a lower tax bracket when you retire than you are now?

[GoConfidently]

More than likely

[forummm]

Then it would probably be better to go with a traditional IRA and do the conversion to Roth when you're in a lower tax bracket during retirement.

[NoStacheOhio]

Then it would probably be better to go with a traditional IRA and do the conversion to Roth when you're in a lower tax bracket during retirement.

^^This.

You could also convert smaller chunks in years when you're in a lower bracket, rather than the full amount in one fell swoop.