Transitioning to attending – 403b/457/RothIRA

Home Retirement Accounts Transitioning to attending – 403b/457/RothIRA

  • Avatar cheetamorf 
    Status: Physician
    Posts: 4
    Joined: 03/30/2019
    Splash Refinancing Bonus

    Hi all! First off, I apologize if this seems to duplicate other questions in the forum. I’m relatively new to this and starting to get educated. I tried searching through the forum but with so many posts, I have been struggling to figure this out on my own. I am finishing up fellowship in a few days and want to make sure I do my best to minimize mistakes as I transition to attending life.

    My questions are as follows:

    1. What should I do with my current retirement assets? Am I allowed/should I roll them over to my future employer’s 457 and 403b? If so is there any tax hit? If I roll-over amounts, does that limit how much I can put in my future employers accounts for the future?

    2. My “Institution” plans are actually a single plan with a source allocation of 95.37% Roth 403b and 4.63% TSA (my first year I accidentally thought that the limit on roth 403b was the same as roth ira and thus I contributed to a TSA instead of the roth 403b). Will this cause me issues if I try to rollover this plan into my future institution’s 403b?

    3. Do any of you have a good way to figure out the fees for each of your plans on fidelity? I got my numbers for yearly fees by seeing what the statement was for the past year, but I have no idea if these are calculated based on a percentage or a flat fee.

    4. My plan upon starting my job in September is to complete a backdoor roth IRA with Vanguard and then try to put in what I can otherwise into my institutions roth 403b and roth 457 before the end of the year while still being able to live and make loan payments. The following year, I would plan on doing the backdoor roth IRA and then working on maxing out both traditional 403b and 457b. Is this the right order, or should i focus on maxing out the 403b/457’s before the backdoor roth IRA? Is there something different I should be doing?

    My current retirement assets from training are as follows:

    Retirement Accounts Amount Allocation
    Yearly Fees 2018-2019)
    Government 457b $6,253.73 Vang INST TR 2050 $50.99
     Unclear if Govt or non- Govt 457b $1,896.28
    $0 (unless >$5k in acct)
    Institution 403b ROTH $30,606.56 VANG INST TR 2055 $43.75
    Institution TSA $1,485.25 VANG INST TR 2055 0 (comanaged with 403b roth)

    My loans are as follows:

    1. ~$25k in newly refinanced loan at 1.95%

    2. ~178k in ~4.75% private loan with family (unable to refinance)

    My future job pays $280k. I get an automatic additional $39k into a 401a. I then have the option to contribute to a 403b and a 457. I don’t start until September, and it’s unclear when my wife will get a job there, so overall this year my tax burden will be significantly lower this year than future years.


    Thanks for all your help!

    #227598 Reply
    jfoxcpacfp jfoxcpacfp 
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8362
    Joined: 01/09/2016

    I am bumping this because someone may jump in with some advice. With apologies, I just don’t have the time to address the minutiae of the multiple issues presented and would advise a little more self-education. There are many excellent blog posts at that will deal with many of your questions and educate in exacting detail and I would strongly recommend you spend some time searching and reading. The search function is excellent and there are many relevant posts linked at the bottom of each new post – a great way to continue your financial education.

    But there are many others who may be willing to shortcut the process for you and, hopefully, a few will step in.

    Good luck in your nascent career!

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only ~ [email protected]

    #227618 Reply
    Avatar wa2106 
    Status: Physician
    Posts: 197
    Joined: 11/29/2017

    I don’t know the full answer to your questions but will respond with my thoughts which will also bump back to top of page.

    1) Governmental 457b can be rolled into new employer’s 457b.  If not you can roll into individual 401k (if you have one) or traditional IRA and convert to Roth (leaving traditional not preferred for backdoor Roth).

    2) Would consider rolling Roth 403b into Roth IRA.  If there are employer contributions within it those will be pre-tax and rolled into traditional IRA.  If that’s the case you should consider converting those to Roth IRA as well and paying taxes this year while taxes are (relatively) low.

    Agree with your plan for this year and next except would favor HSA over 457 especially if new employer’s 457 is non-govermental.  Remember that any contributions you’ve made this year to your previous employer’s 457 and 403b count against your yearly 19k employee contribution limit.

    #227673 Reply
    Avatar cheetamorf 
    Status: Physician
    Posts: 4
    Joined: 03/30/2019

    Thanks! That was very helpful! I’m still debating on the HSA, in part because the non-HSA compatible plan provides really great coverage (0% payment required for even an inpatient admission) and that peace of mind might be worth not saving the additional tax free money.

    #227786 Reply
    Avatar wa2106 
    Status: Physician
    Posts: 197
    Joined: 11/29/2017

    Pick the correct insurance option first, then HSA if eligible based on choice of insurance.

    #227815 Reply

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