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Hmm, this one gets complicated.

I don't know the rules on 403b taxation at withdrawl, but think about this. You will be in a fairly high tax bracket even after you retire (assuming that military pension is taxable.) That will eat up much of the benefit of your 403b, especially if it is taxed at the regular income rate. (Is that how it works?)

You would almost certainly do better to pay your taxes now, invest in some rule maker stocks (or possibly VFINX) and hold on. That way when you do liquidate the highest tax rate you will pay on the gains is 20% (under current capital gains laws.)

Sorry, guess all I did was restate your question. 8-)


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