403(b) Question

[MustachianNewbie]

Hi, all! I live in New York City and make about $230,000 per year (gross income). My fiancee lives in Florida and makes about $31,000 per year. She'll move up to New York in summer 2017. When we get married this summer, we plan to keep our finances mostly separate until we're living together again.

However, my question is this: Should I regularly transfer money to her to help cover living expenses, allowing her to max out her 403(b)? Or over this period, does it make sense to just take the money I'd send to her and put it into our post-tax Vanguard fund? I'm not entirely clear what the tax implications would be for us in either scenario, especially living in two different states.

Any help appreciated!

[MDM]

...until we're living together again.

However, my question is this: Should I regularly transfer money to her to help cover living expenses, allowing her to max out her 403(b)?

Assuming you eventually want it to be "our" money instead of "his" and "hers", once you are married you should start thinking what is best for "us."

That would be maximizing your tax-advantaged investments so yes, sharing money to allow both of you to do so makes sense.

[MarciaB]

I agree on the "our" money comment, and it's connected to "our" net worth. You are doing the right thing, starting to think of the big(ger) picture for the two of you. Living apart or together doesn't change this.

[DrF]

With your combined incomes, it makes the most sense to take advantage of all pre-tax savings plans at your disposal. Have her max her retirement account and you set up a direct deposit into a checking account she has access to.