Hey all, I appreciate the replies! when i said max out my 403b i meant contribute as much as is reasonably possible to reduce my tax burden, not literally max it out. My main intent, and this is where i need someone who is more knowledge to give me advice, is that I would want to hit the lower income thresholds for the savers tax credit so that I get the most benefit for contributing to a saving plan. Does anyone know, if for example I was able to hit the lowest bracket (17,750$ for singer filers) how this would affect my tax refund? Would I actually see the entire 50% tax credit per my contribution or would this benefit be somehow reduced by other complex factors in the tax code?
Now that you have clarified that roth IRA never has penalty on distribution of contributions, is there any reason why I should not max out my 403b ROTH contributions (up to 17,500) or a separate vanguard roth IRA (up to 5000$) to benefit from the savers credit seeing as I could contribute the money, get the savers tax benefit, and (if I wanted to) pull the funds anyway?
Thanks a ton!