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403(b)

  • Avatar dkrautter 
    Participant
    Status: Resident
    Posts: 1
    Joined: 06/21/2019

    Should I withhold 6% of my paycheck for a 403(b) through my hospital? The hospital will match whatever I put in and it will be considered pre-tax dollars. This will knock down my adjusted gross income as well. The 403(b) would be through fidelity investments.

    However, I could reject that and put it in a personal Roth IRA. The hospital will not match that, however, I do have more control over it obviously.

    #223890 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8141
    Joined: 01/09/2016

    You should do both.

    I’m presuming you are making more than the resident’s pay of $55k – or you wouldn’t have mentioned knocking down your AGI. However, if you truly are a resident and your hospital has a Roth option to the 403b, start there. You just don’t want to lose the match. Then you can move on to the personal Roth if you have spare $$.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #223894 Reply
    Dreamgiver Dreamgiver 
    Participant
    Status: Physician
    Posts: 871
    Joined: 03/09/2017

    As an attending you do both. As a resident contribute up to the max match then Roth IRA.

    #223895 Reply
    Liked by ENT Doc
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4452
    Joined: 01/08/2016

    The hospital will match whatever I put in and it will be considered pre-tax dollars.

    Click to expand…

    assuming you qualify, which usually residents dont.

    also usually its only up to a limit.

    is there a Roth 403 option?

    However, I could reject that and put it in a personal Roth IRA.

    Click to expand…

    assuming you are then throwing away part of your compensation? why……

    #223896 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1316
    Joined: 02/15/2016

    Have them withhold as much money as they’re willing to match.

    #223941 Reply
    Avatar Gamma Knives 
    Participant
    Status: Physician
    Posts: 169
    Joined: 06/25/2017

    First confirm residents get the match. Hopefully your program is not like mine. All hospital employees expect temporary workers and residents got a match. I was reprimanded for complaining about this treatment.

    If you get a match I would maximize this. Check if you can do roth 403b and get the match. Even if you can’t still maximize the matching funds. If you still have additional funds to save then do roth IRA.

    #223954 Reply
    TrumpMD TrumpMD 
    Participant
    Status: Physician
    Posts: 18
    Joined: 05/11/2019

    As an attending you do both. As a resident contribute up to the max match then Roth IRA.

    Click to expand…

    How many attending doctors are eligible for Roth IRA these days unless it’s backdoor?

    "Tax loss harvesting": buy high and sell low to achieve true wealth

    #224016 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8141
    Joined: 01/09/2016

    As an attending you do both. As a resident contribute up to the max match then Roth IRA.

    Click to expand…

    How many attending doctors are eligible for Roth IRA these days unless it’s backdoor?

    Click to expand…

    I think we all assume that attendings will need to use the backdoor to get into the Roth. I’m sure @dreamgiver was just making the point that physicians need to have a Roth in their plan, one way or another.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #224029 Reply
    Liked by Dreamgiver

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