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Subject:  Re: 403(b) vs Roth IRA Date:  8/31/2001  11:50 PM
Author:  peppermintpatty Number:  31707 of 88775

gk101 -

You said <<As a teacher, set aside for Retirement savings, I have a 403(b) account (with =no= employer $ match) and also a Roth IRA. Which is my =most= important savings vehicle: the 403b (funded by pre-tax dollars), or, the Roth (funded with after-tax dollars)? I need to prioritize, since I am presently unable to "max" both accounts each year. >>

What you failed to mention is how important the reduction of taxable income might be for you! If you don't need deductions, go for the Roth contribution first. If you could benefit by a current year deduction, go for the 403b first. Of course you know the 403b total contribution limit is much higher than the Roth limit, right? Both are useful plans and they complement one another very well.


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