Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I was informed today by my benefits office that I am elligible for a 403B in addition to a regular pension plan. Does anyone know how a 403B differs from a 401K. The language in my notification is obtuse about the tax implications of a 403B. It seems that taxes on earnings are deferred similar to an IRA. It also seems that contributions are taken out of a paycheck pre-tax.
Does this sound correct?
In the long run isn't a Roth IRA a better long term deal than this since earnings are never taxed? My initial take on this "opportunity" is that I should make sure I contribute $2k to my Roth first and then put additional retirement savings into my 403B.
Does this also sound correct?

I of course will discuss this with my accountant. I just wanted to get any info I could from fellow Fools prior to that meeting.

Thanks in advance,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.