bmc8519ParticipantStatus: ResidentPosts: 3Joined: 03/21/2019
Just started general surgery residency this year. My wife and I will have a gross income of about 100,000 combined. We currently max out our Roth IRA’s every year. My residency does offer a 403b but they have 0% match. I’m not totally in love with any of their options, to be honest, and my Roth has had good returns using low cost index funds. Is it worth it to put less in a Roth and shift some to my employer 403b for the pre-tax benefit?August 23, 2019 at 7:22 pm MST #241185ENT DocParticipantStatus: PhysicianPosts: 3502Joined: 01/14/2017
Max your two Roths. That’s $12k. Saving more at this stage in your career is more important than saving more later, all else equal. So eat free at the hospital, live frugally, and save as much as you can in the 403b – provides the investment options aren’t garbage.Is it worth it to put less in a Roth and shift some to my employer 403b for the pre-tax benefit?Click to expand…
no. you are in 12% bracket. every single penny should be Roth.Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 511Joined: 06/12/2017
No. Max Roth, and then put any extra into the 403(b).
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
https://ProsperousPhysician.com | (717) 496-0900DCdocParticipantStatus: PhysicianPosts: 554Joined: 06/14/2016
Roth IRA. Then Roth 403b if available. No real motivation to save in a pretax 403b at your income level since withdrawals will likely be at higher rate in many years. If no Roth 403b I would likely build EF after funding $12,000 direct Roth IRACordMcNallyParticipantStatus: PhysicianPosts: 2817Joined: 01/03/2017
Agree with the above. Also, it’s never too early to start planning for retirement.
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorAugust 24, 2019 at 7:33 am MST #241276PanscanParticipantStatus: ResidentPosts: 1080Joined: 03/18/2017
Money is money. Just because your tax rate will be higher in the future doesn’t mean that pre tax contributions as a resident are worthless… Obviously Roth options are idealAugust 24, 2019 at 7:34 am MST #241277JBMEParticipantStatus: SpousePosts: 525Joined: 03/26/2018
Try to see if your 403b has a Roth 403b option. If it does, do that instead of traditional. No student loans? Try to get $20k or 20% into retirement. So $12k into Roth IRA and $8k into Roth 403b. Does your wife have a 403:401K? Does she have a match? If so you need to use hers. She might also have better fund optionsjacoavluModeratorStatus: Physician, Small Business OwnerPosts: 2374Joined: 03/01/2018
agree Roth IRA, and Roth 403b if avail
What about debt?
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAAugust 24, 2019 at 7:51 am MST #241281bmc8519ParticipantStatus: ResidentPosts: 3Joined: 03/21/2019
Thanks for all the advice.
I don’t have a Roth 403b option and my wife has no retirement options through her family business. We’re fortunate to have had some family help and I worked through med school, so no student debt. We do own a home and send our son to private school (public schools by us aren’t good and we want him to get the best education possible). I have two other retirement accounts from pre-med school jobs. We also have a joint brokerage account and some be money in crowd sourced real estate.
From what the majority are saying, I think I’ll keep my original plan of max the Roth accounts and hope there is a better employer option in 5-6 years.August 24, 2019 at 8:32 am MST #241293fishdocParticipantStatus: ResidentPosts: 1Joined: 08/24/2019
Related question, I am a first year resident with access to a governmental Roth 457 to which I can contribute up to 19K/ year (not going to be able to contribute nearly that much as an intern), my employer matches this account up to 3.5%.
I am obviously making my 3.5% Roth contribution to this account to get the match, but I am looking to put away some more Roth dollars and am curious if there is any advantage to opening a Roth IRA or should I just put as much as I can in this Roth 457?
The 457 offers low cost Fidelity index funds which is what I am invested in.August 24, 2019 at 8:37 am MST #241279
From what the majority are saying, I think I’ll keep my original plan of max the Roth accounts and hope there is a better employer option in 5-6 years.Click to expand…
if you have no debt, then i digress.
20% to retirement is the goal since you have no other obstructions.
100k -12k =8k that needs to go somewhere. it may as well be the 403 then.The 457 offers low cost Fidelity index funds which is what I am invested in.Click to expand…
rIRA would still be ideal as you wouldnt have to worry about rolling it over afterwards.August 24, 2019 at 8:51 am MST #241303jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 2374Joined: 03/01/2018
If all income is in 12% bracket I’m not sure I’d defer any pretax with no match, what is your state tax rate?
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAAugust 24, 2019 at 9:58 am MST #241313