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Author: MikeRodrig Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: 403(b) & Roth Contributions Date: 2/5/2000 3:07 PM
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I've searched for this answer, and I think I've found it, but I wanted to double-check here and make sure. If this question would be more appropriate for another board (Foolish 401(k), Tax Stratigies, etc.), please let me know.

I am a teacher, and have had a 403(b) for several years (I'm currently in the process of tranferring the money from my current company to Vanguard, but that's a story for another time). I've also recently started a ROTH IRA that I plan on contributing to monthly.

I've read that the annual contribution for a 403(b) plan is a maximum of $30,000 or 25% of compensation. I also understand that a maximum ROTH IRA contribution is $2000/year (The income restrictions do not affect my situation at this time).

My question is this: Are those two vehicles seen as seperate in terms of contributions? In other words, does the $2000/year going into the ROTH count towards the $30,000 or 25% (max) of the 403(b) contributions, or can I (theoretically) contribute $2000-a-year to the ROTH and still contribute $30,000 or 25% of compensation to the 403(b)?

Finally, in a possibly related note, I also have money (contributions from the school district and money taken from my check) placed into our state's teacher retirement system. Does this money affect the total I can contribute to the 403(b) and/or ROTH referred to above?

Thanks much for any help. I hope this wasn't too confusing. Please feel free to ask for clarification, and I'll try again.

Mike
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