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403B Vs Roth 403B

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Hi all,


My husband and I are looking for some clarity regarding 403b vs Roth 403b. We are both teachers in NY state in our early 40s. I am currently maxing out the NYS 457 Plan and have a tiny amount going into a 403b via Aspire (it's the only decent 403b plan my district offers and I can access Vanguard that way). My husband is in another district and is maxing out his 403b with Vanguard.


We are wondering, however, about the tax implications down the road of having everything in pre-tax accounts. If we continue to work until retirement (which we plan to do) we *should* both have pretty good pensions and thus will likely remain in a higher tax bracket. We are now thinking we should be putting at least part of our retirement savings into Roth 403b's, which we didn't even know was an option until just this month.


Any thoughts on this would be greatly appreciated.


Thank you!

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I don't have an answer but at risk of repeating what you already know, this is where I'd start:

1. Figure out what tax bracket I'm currently in.

2. Estimate my spending needs in retirement.

3. Figure out what tax bracket the expected pension, expected social security, expected withdrawls from the traditional accounts, etc. will put me in during retirement.

4. Recognize there is uncertainty with the tax code in the future.

I'd aim to have enough in the traditional so that in retirement I fill up the tax bracket I'm currently in. If I expect to hit that point then I'd put the rest in a Roth. For me personally, my gut (without precise calculations) suggests, with a fair amount of confidence, that I won't be in a higher tax bracket in retirement.

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If I could put my two cents in and its just my opinion. Without getting too involved in an evaluation of pros and cons , my gut feeling is I would go 100% Roth 403b/457b and never look back if I where you.






This article might help you decide which might be best for you. https://americanfundsretirement.retire.americanfunds.com/tools/calculators/roth-401k.htm

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Thanks for the replies! Tony - the calculator you linked to is very helpful. We will definitely be moving toward more a Roth 403b (the Roth 457 isn't available for us)...just need to figure out current tax implications.

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