The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: MikeJones2001 on November 02, 2019, 12:43:06 PM
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I am a firefighter making around 55k per year. Right now I contribute to my 403b as much as i can ($630) per month and i save a little bit each month ($300) in my roth ira. Would it be better to max out my Roth IRA and then just save a little in my 403 b , or should i stick to my current plan?
I have a Brokerage account right now with about 60k in it just in case I need some cash for emergencies or if i decide to buy a home. As of now i rent an apartment.
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I am a firefighter making around 55k per year. Right now I contribute to my 403b as much as i can ($630) per month and i save a little bit each month ($300) in my roth ira. Would it be better to max out my Roth IRA and then just save a little in my 403 b , or should i stick to my current plan?
I have a Brokerage account right now with about 60k in it just in case I need some cash for emergencies or if i decide to buy a home. As of now i rent an apartment.
Assuming you file single, if $55K would be your AGI with no 403b or tIRA deductions, the first $3,375 of 403b or tIRA contributions would save 22% and any more would save 12%*. Your call on how you expect your marginal rate when withdrawing from traditional accounts will compare to that 12%. See Traditional versus Roth - Bogleheads (https://www.bogleheads.org/wiki/Traditional_versus_Roth) for more.
*You could reach the first tier of the saver's credit, but it would take such a large total of traditional contributions that the marginal rate on that total would be only 13%.
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i appreciate the response.
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Also consider whether you'll get a pension which might keep you in a high(er) tax bracket in retirement compared to now.