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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