Discussion:403(b)/TSA/TDA
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Discussion Forum Index --> Tax Questions --> 403(b)/TSA/TDA
Oaxacquita (talk|edits) said: | 9 June 2006 |
| What are some of the negatives of 403(b)plans, besides the obvious (no withdrawals until 59.5)? Is it true that high admin. costs are also another negative? My next door neighbor,who is a 39 year old teacher with one child asked me about them. She has some extra money she wants to save for retirement. Are there other alternatives that a teacher would have to put money away for retirement. | |
| 9 June 2006 | |
| If her employer/school is matching any portion of her contributions, then this is the best place to invest, for she's receiving an immediate return! That'll far offset any costs along the way, even if they are high. If they're not matching...there's not enough information. Would she need access to the money? Is she married and her hubby is also investing? Do they have other cash available in emergency? A Roth IRA is a great option, or the Roth 401/403 that may be available now, since it'll be all tax free at retirement. It provides no tax relief now. | |
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