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Pros for 403b:
-Greater potential current tax deferral than IRA.
-No AGI limits.
From a previous post -

You can borrow from your contributed money at a favorable interest rate for various needs (maximum $50,000.)
-Ability to Rollover to an IRA upon separation from employment.
-Potential employer match (maybe not in your case)
-Catch up provision often allowed after employment for 15 years which allows MORE than the usual $10,000.

My question........
I have worked at a hospital for 25 years and have contibuted to a 403b plan for about 10 of those years.
For the past 2 years I have maxed out my 403b contributions and am happy to be saving on my taxes by doing this. Now, I am considering increasing my contribution to take advantage of the "catch-up" provision. I can increase my contribution to $13,000/year. Another catch is that I am hoping that this strategy will help when my two college kids apply for Federal Aid. Any suggestions?
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