403b account

[bisimpson]

Hi guys, we really started thinking about retirement about ten years ago. At the time, we decided to forego investing in our 403b—the 401k equivalent for a nonprofit. We didn’t get a match so we decided to fully invest in a Roth and then just open a taxable account. We didn’t want to lock our money up until it matured and the Roth gave us about 15% of our income, which was what everyone said we needed for retirement.

Since becoming acquainted with mmm, we’re reevaluating all of this.  I’ve reached out to our HR office to see what’s available. Are there any rules of thumb that we ought to consider as we pursue this? Expense rates? Limits? Etc.? Thanks so much!

[MDM]

You might start with
Investment Order and
To 401k or not to 401k? That is the question.

Those may answer some questions and create others.... :)

Any new questions, just ask!

[terran]

Also https://www.bogleheads.org/wiki/401%28k%29#Expensive_or_mediocre_choices

[bisimpson]

This is super helpful. Thanks so much. The advice from Bogleheads wiki makes sense. I’m assuming that you’re weighing the difference between the fees from a bad 403b fund option against the tax you would pay on a taxable account.

[MDM]

I’m assuming that you’re weighing the difference between the fees from a bad 403b fund option against the tax you would pay on a taxable account.

Good assumption!

[Spendy Stache]

When looking at 403b options, make sure to look at hurdles to rolling it over to an IRA if you might eventually switch jobs. I had really limited options at the place I worked, and the company made it a total pain in the ass - it took me a year of paperwork and phone calls - to get it rolled over. If your work offers limited options (no vanguard/betterment/fidelity) it may not be worth it IMHO.

[erutio]

On the employee side, 403b's are the exact equivalent to 401k's regarding tax treatment and other advantages. 
The problems mentioned about bad fund options, fees, difficulty with rollovers, lack of employer match, etc, can apply to bad 401k's also, and are not specific to 403b vs 401k.
In the investment order link, substitute 401k with 403b and you get your answer.