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Withdraw money yet contribute to 403B?
Old 06-17-2012, 08:14 PM   #1
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Withdraw money yet contribute to 403B?

This may be six of one half dozen of another, and it may be a stupid question, but here goes:
I will retire next year. Plan is to have DW (who will continue to work) stop her current 403B contributions once I'm retired. Is there any benefit to continue her 403B (there is no employer match) if it means having to withdraw an equal sum of money from other tax deferred savings?
Like I said, it sure looks like six of one.... but maybe there's a reason to do so.
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Old 06-17-2012, 08:27 PM   #2
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The only reason I can think of is to reposition the money. I try to empty my IRA first and leave DW's to grow since I'm 5 years older and my RMD's will be higher sooner. So maybe the 403B may have some benefit over your pre-tax account.
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Old 06-17-2012, 10:31 PM   #3
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Depending on your state, ERISA plans (401K and, I think, 403B) may have better creditor protection than IRAs.
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Old 06-20-2012, 08:00 PM   #4
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Quote:
Originally Posted by Animorph View Post
The only reason I can think of is to reposition the money. I try to empty my IRA first and leave DW's to grow since I'm 5 years older and my RMD's will be higher sooner. So maybe the 403B may have some benefit over your pre-tax account.
+1 on the RMD issue.

All else being equal I'd want the oldest person's IRA reduced, before RMD force tax consequences you might not like.
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Old 06-21-2012, 08:53 AM   #5
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If it is (or could be) a ROTH 403B, this would give you a way to get money into Roths. A Roth might be good, or at least a tax diversification strategy - but that depends on your situation and future tax rates.

-ERD50
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