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Transitional year 403b question, employer match will not vested

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  • Avatar kobeshaq824 
    Participant
    Status: Student
    Posts: 4
    Joined: 02/26/2019

    Hello all, I’m a transitional year at a hospital and I have already matched into radiology at a large medical center that is separate from my current program. I am due to make around 58,000 this year and we have the option of starting a 403b account. I was planning on trying to max that account out… I just learned that my contributions will be vested but they will not be matched and vested from my employer like other residents because I will not be here for three years like it is required. I am wondering if I should open this 403b account and still contribute to it or if I should open a different savings account? Thank you for the help.

    #225512 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2484
    Joined: 05/01/2017

    would probably drop drop $6k into a Roth IRA first and then if you want to do another $12k into your 403b it wouldn’t be a bad idea at all. It’ll be easy to roll.

    you don’t lose anything, but there’s not a ton of point in prioritizing that space over rIRA if you aren’t getting your match.

    #225526 Reply
    Dreamgiver Dreamgiver 
    Participant
    Status: Physician
    Posts: 859
    Joined: 03/09/2017

    What MPMD said, if you can afford it and if the plan allows it, do Roth 403b contributions

    #225535 Reply
    Liked by jhwkr542
    Avatar artemis 
    Participant
    Status: Physician
    Posts: 588
    Joined: 12/02/2016

    Agree with the others:  if you can afford to put money into the 403b after you max out a Roth IRA, do it.  You’ll almost certainly be able to roll the 403b into your new employer’s 401k or 403b later on.  (And even if you can’t, you can roll it into an IRA and then do a Roth conversion; you’ll owe a bit in taxes that way, but you’ll still get plenty of benefit.)

    Tax-advantaged growth space is limited, so take as much advantage of it as you can!  Your older self will thank you.

    #225574 Reply
    Avatar Brains428 
    Participant
    Status: Physician
    Posts: 392
    Joined: 11/09/2017

    I was in a similar situation. If you find a post of mine from a few days ago, I contributed to the 401k and ended up losing track of it over 6 years and finally rolled it over to my solo 401k. My understanding of finance as an intern was I should save something… and it pretty much ended there. If I knew more, I would’ve opened a Roth IRA.

     

    I’m not sure if your hospital works this way. My intern year was at a private hospital owned by HCA. I was paid by them and you automatically qualified for an extra week of pay because HCA gives 4 weeks off/year, but GME only gives 3 (15 days). I didn’t take any official vacation intern year and got a month extra pay. I did 2 ER months instead, since the work obligation was to work 17 shifts in 35 days. So, if you’re at a private hospital, I would look into it.

    #225591 Reply

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