roth vs traditional 403(b)

[LoveTrains]

Hello everyone! My new job has a roth 403(b) choice in addition to the traditional. one can select one or both! I have a roth IRA but I got a big raise to new job and we might make too much now.

I should do some money to the Roth, right? I was thinking I might do 10% traditional and 2% roth. Thoughts ?

[LoveTrains]

I really need the tax relief that the traditional 403b provides. My 403b match will be regardless if I opt for whatever combo of Roth or traditional 403b. That's why I'm torn, I really don't want to do less than 10% traditional 403b but I know I need more Roth contributions. Bah.

[LoveTrains]

Nov 29, 2016 5:29:07 GMT -5 RockNVoll said:

Well, I don't know that Roth contributions are really a need, but I get what you mean in terms of diversifying your pools of retirement money. Do you have any Roth money now?

Since you need the tax benefits today, I think your 10%/2% split is a reasonable compromise. It's great that you have this option!

I put like $1200/year into a Roth and so does H, for a total of $2400/year. 12% will not be maxing me out but I do get an 8% match which is fully vested so I'm pretty comfortable with 20% of my salary put away. 

[kadams767]

One consideration we thought about was if we were close to the Roth IRA income limit, if increasing or maxing 401(k) would bring us under the limit and allow us to contribute to a Roth IRA. That depends on your actual income and what you can afford to co tribute in total, though, of course.