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- Aug 24, 2007
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I just wanted to get some input on my financial plan.
Income - 240,000
Married, filing jointly. No kids yet.
When I first started, I didn't really have an idea of what to do so just did the basic 403b (max at 18k) with 401 A (employee match).
Researched 457, Roth, 529 etc. and talked to several colleagues but opinions vary.
Have appt with our financial guy next week but wanted some food for thought for the meeting.
1. With Roth gains not being taxed, does it make sense to max out 18k in 403b as a post-tax rather than pretax? I guess we would lower our tax bracket by doing it pretax from 33% --> 28%, but the heavy hit on taxes at the end of regular 403b seems like a doozy.
2. 457 b seems to be the same as 403b i.e pretax, but does not have the option to do it as a Roth, so the issue with that is based on hospital policy, those accounts can be "raided" if there is ever a bankruptcy or a major lawsuit. So Q is why does it, or does not, make sense to put another 18k in 457?
3. 529 - My understanding is that it can be opened in nephew/nieces name and transferred to your kid when you have one. Since this is post-tax it won't lower tax bracket is there an advantage to doing so now, when we don't have kids?
Thanks
Income - 240,000
Married, filing jointly. No kids yet.
When I first started, I didn't really have an idea of what to do so just did the basic 403b (max at 18k) with 401 A (employee match).
Researched 457, Roth, 529 etc. and talked to several colleagues but opinions vary.
Have appt with our financial guy next week but wanted some food for thought for the meeting.
1. With Roth gains not being taxed, does it make sense to max out 18k in 403b as a post-tax rather than pretax? I guess we would lower our tax bracket by doing it pretax from 33% --> 28%, but the heavy hit on taxes at the end of regular 403b seems like a doozy.
2. 457 b seems to be the same as 403b i.e pretax, but does not have the option to do it as a Roth, so the issue with that is based on hospital policy, those accounts can be "raided" if there is ever a bankruptcy or a major lawsuit. So Q is why does it, or does not, make sense to put another 18k in 457?
3. 529 - My understanding is that it can be opened in nephew/nieces name and transferred to your kid when you have one. Since this is post-tax it won't lower tax bracket is there an advantage to doing so now, when we don't have kids?
Thanks