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You can NEVER recover your "base" once you withdraw it. You cannot make any contributions in excess of the annually allowed limit. There is no "payback" provision to return the removed funds to your IRA.

I can put more in a Roth than I intended to otherwise. In any case, what I intend to withdraw is only like 15% of the total.

And if you didn't withdraw the 10K, you could still put in more than you intended to. Work the numbers and you'll see how much you will lose and it WILL be substantial.

Diverting retirement funds to other purposes is rarely a good idea since most people significantly underfund their retirement.

Unless you have a great 403b with generous matching. I know this goes against common wisdom, but for many people in their 30-s (like me) the retirement may be the simplest part of the total financial picture. With 13.5% of my salary going into a 403b (including matching), I tend to think that's enough. And also, with the long-term capital gains taxed at 5% you really don't pay that much for liquidity anyway.

Congratulations on being able to save such a significant portion of your income. That puts you far ahead of most others your age. However,
I don't understand your reference to 5% capital gains. First off, that rate is only in place until 2007 (It's 0% for 2008 and 10% for years after 2008.) and only applies if your taxable income is fully in the 10 or 15% tax bracket. If your taxable income is that low, it's highly unlikely that your 403b will provide enough income for your retirement if you plan on retiring before you're in your 70's. Also, 403b distributions are taxable as ordinary income, not capital gains.

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