EndersLegacyParticipantStatus: PhysicianPosts: 1Joined: 07/07/2019
I am doing a one-year fellowship. My hospital offers a Tax-sheltered Annuity 403(b) traditional TSA and a Roth TSA with a 19,000 yearly max with no matching. Should I contribute for one year? Should I do traditional TSA or Roth TSA The best fund they offer are the Vanguard Institutional Target Retirement funds Institutional Shares with an expense ratio of 0.09%. The max I would be able to contribute is 12,000. I already max my Roth IRA. I am in income-based repayment for my student loans and plan on refinancing them after I finish fellowship. I was thinking I could contribute 12,00 and then roll it over into my Roth IRA. Is the best use of my money or if I should use it for something else.July 7, 2019 at 7:47 am MST #228335GParticipantStatus: Physician, Small Business OwnerPosts: 1863Joined: 01/08/2016Is the best use of my money or if I should use it for something else.Click to expand…
hard to guess.
most fellows would do best with Roth 403b. this year for sure, next year possibly traditional assuming you are going to make $$$ starting in the summer.July 7, 2019 at 7:54 am MST #228365TimParticipantStatus: AccountantPosts: 3275Joined: 09/18/2018
Roth 403b. The gains will be non-taxable once you begin withdrawals after 59.5. Low tax now, no tax later.July 7, 2019 at 8:11 am MST #228367jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8316Joined: 01/09/2016
No way to know if this is the “best use” of your money. If you aren’t married or are, but have a non-working or low-income spouse, and can afford it, I’d go for the Roth option. In general, I would prioritize an HSA over the 403b Roth or a Roth IRA, though, if available. If the fellowship is your household’s only source of income, I doubt you can do all 3.
Do you have appropriate term life and OO LTDI lined up?July 7, 2019 at 11:29 am MST #228438