Author Topic: Contributions to Traditional 403(b), Roth 403(b) and Roth IRA  (Read 1079 times)

windypig

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Hi all, I work at a non-profit that allows for contributions to both a Traditional and a Roth 403b.

I am currently maxing out my Traditional 403(b) by contributing $17,500 and maxing out my Roth IRA (I put $5500 in at the beginning of every year)

My question is what are the contribution limits regarding my Roth 403(b) and does it make sense to utilize that over a normal brokerage account? Can I reap the benefits of both a Roth IRA and a Roth 403(b)?

I have a sneaking suspension that I can either contribute a max of 17,500 over both of the 403(b) options or can contribute 5500 max over both Roth options and so I will be unable to utilize the roth 403(b)

seattlecyclone

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Re: Contributions to Traditional 403(b), Roth 403(b) and Roth IRA
« Reply #1 on: June 09, 2014, 02:35:43 PM »
The $17.5k contribution limit is shared between the traditional and Roth 403(b)s. You can contribute some to each, but not more than $17.5k total.

Since you're already maxing out your contributions, the question is whether you would be better off shifting some of your traditional contributions to Roth contributions. The general wisdom on here is that an early retiree will almost never need to be in a higher tax bracket in retirement than while working, so you're probably better off with the traditional contributions.