Author Topic: Hiding medical school tuition in 403b/457/IRA  (Read 1338 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 68
Hiding medical school tuition in 403b/457/IRA
« on: January 23, 2016, 01:29:06 PM »
I'm about 4 years off from starting medical school and am saving for tuition in my retirement accounts. I live in a state with a 5.25% income tax and the state I am planning on moving to for medical school does not have an income tax. My plan is put $45,000 per year into my pension (required)/403b/457/and IRA accounts. When I attend medical school and if I draw from my retirement accounts I will save roughly 10% in federal income tax, and an additional 5.25% in state income tax, leaving me with an additional 15% (should it hold its current value) as opposed to paying taxes now and putting the funds in a CD. Traditional advice is to not invest money that is needed in the near term. My question is should I put the funds into a stable market fund (fidelity) or allocate a percentage to stocks and bonds? In the event that I invest in stocks and bonds and the value goes down, I would end up taking out student loans until either the funds regained their value or I finish school. Some amount of loans are going to be inevitable.


  • Magnum Stache
  • ******
  • Posts: 4265
Re: Hiding medical school tuition in 403b/457/IRA
« Reply #1 on: January 27, 2016, 09:35:35 AM »
If you're four years from Starting, then you must be 8+years from finishing. Having 1/8-1/4 of your money in SP500 index fund sounds safe to me.

50% may even be reasonable.