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Our employer contributes a fixed 10% of our gross income irrespective of any employee contributions. We do not need to contribute as there is no match. These employer contributions go into a separate 401A account. But as you say, it is worth contributing because of the tax deferral. We should...

Thanks. That's the rub as they say. We are both fortunate to work for employers with 403b plans which allow us to make the maximum employee contributions and provide a generous employer contribution as well. After all these contributions have been made we are left with about 40% of the gross...

My understanding was that you can withdraw from the 403b as long as you separate from the job after the age of 55. You would lose this ability if you roll over to an IRA.

Yes, 98% is in taxadvantaged accounts. We contribute 57k a year with 2 403bs + 2 Roth Iras + employer contributions. This is almost 50% of our gross income. All of the 403b xontributions fall in the 33% tax bracket (combined federal + state). To me it seems like paying an up front tax of 33% in...

Many thanks for the comments. It is true that we have very little in taxable. Each of us can contribute upto 17k to the 403b. If we did not contribute but saved in the taxable account then it would be taxed at 33% (combined federal + state) marginal tax. I could make withdrawals after 55 from...

Hello everyone, I am trying to figure out what next to do in order to be financially independent and retire early. Some details: -- We are in our early-to-mid 40s couple. -- Our tax bracket is 25% federal and almost 8% state -- Have been maxing out retirement accounts for the last few years...