Why do no academic hospitals seem to offer match? Is 403b still worth it?

[sliceofbread136]

I would love so much to have a match. I would eat that up.

right now I’m still using my 403b (despite no match) with the plan to roll over to an ira and convert to Roth before I finish fellowship and get a bump in my tax bracket. Is this a smart plan? Should I make an effort to max out my 403b to the extent that I can currently afford??

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[NITRAS]

Your 403b is basically equivalent to 401k. As long as your options are good, no reason you shouldn’t. Most places have ROTH 403b options too.

If your options are bad, then I’d put my first dollars in a ROTH IRA.

I’d personally put my money towards my student loans first though.

 

[sliceofbread136]

Your 403b is basically equivalent to 401k. As long as your options are good, no reason you shouldn’t. Most places have ROTH 403b options too.

If your options are bad, then I’d put my first dollars in a ROTH IRA.

I’d personally put my money towards my student loans first though.

No loans thankfully! Ya I maxed my Roth IRA for the year and my fiancé's

I don’t have a Roth 403b option unfortunately, which is why right now my best option seems to be attempting a roll over at some point to an ira and then converting to Roth. I probably need to talk to a financial advisor or something to make sure I’m not missing something and end up havingtax consequences?

 

[NITRAS]

That will work. When you roll it into ROTH from a pre-tax account, it will become taxable. When I leave my current position, I plan on rolling all my pre-tax into ROTH (assuming I’m going to work several more years). This is probably a bit controversial, but ima huge fan of Roth.

The other options are to roll your pretax 403b into a pretax 401k/403b from your next gig (assuming they accept them) or a pre-tax IRA. The latter messes with doing a backdrop Roth. If you have significant 1099 income, you can open a solo 401k.

 

[ThoracicGuy]

That will work. When you roll it into ROTH from a pre-tax account, it will become taxable. When I leave my current position, I plan on rolling all my pre-tax into ROTH (assuming I’m going to work several more years). This is probably a bit controversial, but ima huge fan of Roth.

The other options are to roll your pretax 403b into a pretax 401k/403b from your next gig (assuming they accept them) or a pre-tax IRA. The latter messes with doing a backdrop Roth. If you have significant 1099 income, you can open a solo 401k.

If you have ANY 1099 income you can open a solo 401k.

 

[sliceofbread136]

I wish I had 1099 income... I wish I had any form of additional income

 

[Baron Samedi]

403b is definitely still worth it, even without a match. It's a tax advantaged account. If no match, maximize yours and your spouse's IRA, then any additional money you wish to save for retirement should go into the 403b.

You should also consider what other sorts of things you may want to save for, though. Do you have an emergency fund? Are you planning on buying a house at any time? Or saving for relocation expenses after your fellowship? You might not want all of your funds in non-liquid retirement funds.

For the record, there are plenty of academic hospitals that offer a match. Many have a long vesting period, though, which may not come into play for shorter fellowships and residencies.

 

[sliceofbread136]

403b is definitely still worth it, even without a match. It's a tax advantaged account. If no match, maximize yours and your spouse's IRA, then any additional money you wish to save for retirement should go into the 403b.

You should also consider what other sorts of things you may want to save for, though. Do you have an emergency fund? Are you planning on buying a house at any time? Or saving for relocation expenses after your fellowship? You might not want all of your funds in non-liquid retirement funds.

For the record, there are plenty of academic hospitals that offer a match. Many have a long vesting period, though, which may not come into play for shorter fellowships and residencies.

got 5k emergency fund. About 100k in other various stock equities (some as gifts, some that I saved). My current housing situation is a little complex, I’m moving back with my parents for alittle. Depending where I match they have offered to basically give me a 0% interest mortgage which I will likely take advantage of.

Once I figure out my future plan a bit more I will probably max out my 403b to the extent that I can with the hope to roll over to a Roth IRA while I’m in a low tax bracket... but I’ll see how it goes

 

[ThoracicGuy]

got 5k emergency fund. About 100k in other various stock equities (some as gifts, some that I saved). My current housing situation is a little complex, I’m moving back with my parents for alittle. Depending where I match they have offered to basically give me a 0% interest mortgage which I will likely take advantage of.

Once I figure out my future plan a bit more I will probably max out my 403b to the extent that I can with the hope to roll over to a Roth IRA while I’m in a low tax bracket... but I’ll see how it goes

Even if you can't roll it financially to a Roth, saving in a 401k/403b is still a great idea. You're definitely ahead of many of your colleagues.