Author Topic: Can I have a Traditional IRA and a 403b and a 457 at the same time?  (Read 544 times)

nsmall

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I understand my employer takes out my money for a 403b and I am trying to sign up for a 457.

My question is what about the traditional IRA?  I have been contributing to my ROTH IRA for 14 years, but now I am learning so much on this great site, I think I need to go buck wild on pre-tax investments.

How to I contribute to a traditional IRA?  My ROTH IRA is already set up with Vanguard.

Thanks

degrom7

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Re: Can I have a Traditional IRA and a 403b and a 457 at the same time?
« Reply #1 on: November 10, 2018, 07:20:50 PM »
Yes you can. I contribute and will max out all 3 next year.


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degrom7

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Re: Can I have a Traditional IRA and a 403b and a 457 at the same time?
« Reply #2 on: November 10, 2018, 07:23:14 PM »
Remember only the traditional 457 allows for early withdrawal before age 59 1/2 without penalty as long as you resigned from that job. If you withdraw from the roth 457 before that age, you will pay the fee.


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nsmall

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Re: Can I have a Traditional IRA and a 403b and a 457 at the same time?
« Reply #3 on: November 10, 2018, 07:38:17 PM »
@degrom7   So if I do a traditional 457 I can take an early withdrawl with no penalties besides paying taxes on the money withdrawn?  I plan to leave my job and state in 3 years and hope to retire before I am 59.5.  I am 38 right now.

degrom7

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Re: Can I have a Traditional IRA and a 403b and a 457 at the same time?
« Reply #4 on: November 10, 2018, 07:53:11 PM »
@degrom7   So if I do a traditional 457 I can take an early withdrawl with no penalties besides paying taxes on the money withdrawn?  I plan to leave my job and state in 3 years and hope to retire before I am 59.5.  I am 38 right now.

Basically there's no 10% penalty for withdrawing from either a traditional or roth 457 as long as you quit that job. The only reason why a roth mixed with FIRE is a bad idea is because you get taxed when you contribute from your paycheck AND you pay taxes again when you withdraw before turning 59 1/2.

Just a heads up on leaving your state and 457. In my state (NY), if I withdraw from my 457 after 59 1/2, I don't pay state and city tax for the first $20,000 each year. Not sure if it's the same in your state.


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