Roth 403b

[mbolger]

My wife began working at a different hospital with a much different retirement account structure than her previous job.  We are currently contributing $18,000 to her Roth 403b plan and another $18,000 to her 457 plan.  With this setup, would it still be a good idea to do a backdoor Roth as well? Most of our retirement monies are in tax-deferred accounts, so I'm trying to even things out a little bit.

Thank you.

[PhysicianOnFIRE]

Yes, of course.

At higher tax brackets, it's generally best to max out all the tax deferred space available to you (possibly HSA as well), and fund a backdoor Roth (or 2). After that, taxable investments if you've got more money to save.

[DMFA]

If it's backdoor Roth vs taxable, surely you'd choose the untaxed one over the taxed one, right? Unless you think you might need to draw it in less than five years from now...but that's a different issue

[jfoxcpacfp]

mbolger wrote:

My wife began working at a different hospital with a much different retirement account structure than her previous job.  We are currently contributing $18,000 to her Roth 403b plan and another $18,000 to her 457 plan.  With this setup, would it still be a good idea to do a backdoor Roth as well? Most of our retirement monies are in tax-deferred accounts, so I’m trying to even things out a little bit.

Click to expand...

Yes, as long as you are not sacrificing other parts of your plan to do so (i.e. have an emergency fund, disability and term life insurance, and so forth).