My wife and I each have Roth IRAs and contribute the full amount annually. We have a combined annual income of <$100k. Can I also contribute to a 403b annuity through my workplace?-ash
Greetings, Ash, and welcome. You asked:My wife and I each have Roth IRAs and contribute the full amount annually. We have a combined annual income of <$100k. Can I also contribute to a 403b annuity through my workplace?If you are eligible to participate in a 403b plan at work, then you may do so. Your use of a Roth IRA has no impact on that eligibility. In fact, if anything, the 403b plan participation would affect your ability to use a fully deductible traditional (not Roth) IRA. For details, see our IRA Area at http://www.fool.com/money/allaboutiras/allaboutiras.htm and IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html.Regards..Pixy
Whether you CAN is a different question from whether you SHOULD. If the annuity has high enough fees, it might be better to buy-and-hold low-dividend stocks, or a tax managed mutual fund.
My 403(b) through the University where I work is called a "Tax Sheltered Annuity" but it really isn't. We use Vanguard and can choose from any of their funds, just like a typical 401k (no matching though). I was advised by the school that the name "annuity" was just kept out of habit.Adenovir
403(b)s were originally required to be annuities (the idea was that teachers needed to be protected from "risky" investments) but a change in the law allowed mutual funds.
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