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Subject:  Re: What comes first? Date:  2/23/2001  11:25 PM
Author:  Mark0Young Number:  28079 of 88532

So what if the 7% contribution from my employer is not contigent upon my also contributing money to the 403b? Should maxing out a Roth, first, be a priority and then continuing contributions to my 403b?

In that case, the recommendation I labeled #1 wouldn't apply.

I would recommend funding the Roth IRA fully.

However, if you decide to fund the 403(b) at this time instead of the Roth IRA, you will still be doing very well, especially since TIAA-CREF's various stock investment accounts are pretty good with large caps and, even with the M&E fees, have very low expenses. Plus, the 403(b) has the added advantage of payroll deduction so one doesn't forget to contribute.

Either will help your retirement, so either or both would be good, and both are far, far, exceedingly far better than doing nothing. (Alas, at my work too few people participate, even though they can start participating in TIAA-CREF's "Group SRA" (403(b)) for as low as $25/paycheck.)

And since either will be good, you could do some of both if you wish.
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