Advice on 403b and/or Roth IRA in 403(b) Forum Posted September 15 · Report reply 17 minutes ago, krow36 said: OP states that the relative is with a charter school Got it. 18 minutes ago, krow36 said: If the relative could max the 403b over 2 years, that might be worth it. I don't think contributing only 2k or 3k/yr would be worth it, and I'd prefer it to into a brokerage account. I don’t know how you’re defining “worth it”, but if it makes financial sense to put $1 in the tax advantages account then it makes sense to put the next dollar in too. I can’t think of a mathematical reason it would be worth it for 2k, but not 19k. If you’re saying it isn’t worth a person’s time to set up a 403b account and deal with AXA for such a small balance, then I guess that’s a judgement call. 21 minutes ago, krow36 said: I think your disparagement of a taxable brokerage account is perhaps unjustified. The modest amount of taxable dividends that a fund like Vanguard's Total Stock Market fund generates should not a significant problem for someone likely to be in the 12% bracket while at the charter school. The size of the distributions are relative to the size of the account, which makes the absolute value of the distributions irrelevant. The only thing that’s relevant is the tax drag as a percentage of the principal. If the tax drag in a taxable account is just 0.05% of the balance each year then I’d gladly pay an extra 1% fee in year 1 to avoid a lifetime 0.05% fee. The break even point with those figures (and a 7% return before fees/tax drag) is 20 years. I don’t presume to know their tax situation. The tax drag will be less for low income folks. Of course an index fund will be more tax efficient than an actively managed fund. My primary point was just that a short time horizon with the current employer increases the viability of using their higher fee plan because you don’t have to pay the large fees for very long before you can rollover to a low cost tax advantaged account and avoid the potentially lifelong tax drag associated with a taxable account. I use taxable accounts heavily. Roughly 3/4 of my portfolio is in a taxable account.