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How to play future change in employment with and without 403(b) match

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  • How to play future change in employment with and without 403(b) match

    I am a current resident graduating June 2017 and will start a 1 year fellowship July 2017 ending June 2018.

     

    Through my current employer I have access to a 403(b) with 0% match. I am on pace to contribute a full $18K between Jan 1, 2016 - Dec 31st 2016.

    My future employer will also give me access to a 403(b) but this time with a 100% match   .

     

    Should these striking differences in match % change how I invest during my final 6 months (Jan - June 2017) with employer #1 knowing that on July 1st, 2017 everything I contribute is matched 100% with the new employer?

    My gut tells me to not contribute a dime from Jan-June 2017, and once July hits max out the account because the 100% match will kick in. I should then max out the account again from Jan - June 2018.

     

    Sound right?

     

     

     

     

     

  • #2
    Yes.  You may as well take advantage of the match.  I would not contribute the first half of the year and maximize your contributions during the second half of the year to take advantage of the match.

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    • #3
      Match = free money (as long as you're vested with enough years of employment).

      Your plan sounds like a good one.  Even if the prices are less favorable for investing then, it's not likely to equal the 100% gain from your match.

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      • #4




        My future employer will also give me access to a 403(b) but this time with a 100% match   .
        Click to expand...


        Match up to what amount?

        To clarify my original question, does either plan have a profit-sharing component?

        Also, not sure what you mean by maxing out in the 1st 6 months of 2018. Is there a specific reason to do that, i.e. just to put your money to work sooner? As we have discussed on another thread, you might lose out on some matching $, depending upon the plan, so check the SPD. otoh, your situation/employer could change a lot in the next 1.5 years and this subject will become moot.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          I would assume up to 18k

          But yes don't contribute after January!

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