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Mamacita

403(b) Vs. Ira

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Can you tell me the difference between a 403(b) and an IRA. What are the advantages of one over the other? My dad swears by IRA's, but seems not to know at all about 403's even though he is eligible. Others tell me 403's are the better way.

 

Thanks,

 

Mamacita

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There are many similarities between the two. One of the problems with 403b's are the high charges/commissions, usually hidden, while IRA's CAN be purchased without paying loads or exhoribant (sp) expenses. An advantage to the 403b is that it can come directly out of your salary so it doesn't take as much discipline. The usual advice is to do a Roth IRA first unless there is an employer match which is unusual in the 403b world, and then do a 403b OR, depending on the expenses of the plan, a low cost, tax efficient investment.

 

Roberta

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Yes, JLF, my husband and I are eligible for a 403(b).

 

Thank you Dan for the link. This answers all my questions! Now I can discuss this intelligently with my Dad! :)

 

Mamacita

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