WCI Forum,
Thank you all for your time and advice on this forum--I have learned a great deal from your input.
I'm starting a new position with a university and they have been sending me information on benefit enrollment plans. Two plans really stand out--they have a 403b and 401a irrevocable pretax plans that both allow up to $53,000 in pretax money. The irrevocable aspect means I have to declare how much to contribute to the plan before my first day of employment and then I am locked into that amount until I retire--I cannot change it at any time. These sound like great options to potentially put away $106,000 in pretax money, however, I have not seen plans that allow this much--they are typically capped at $18,000. I'm a little concerned about locking up that much money in an irrevocable account, but it does seem like a nice option for tax reduction.
Does anyone have experience with these plans and would you recommend them for tax purposes?
The university also has two other pretax plans that allow flexible contributions up to 18,000 each. Therefore, the university potentially allows for $142,000 pretax options. I've been trying to max out my backdoor Roth IRA contributions as well as an after tax strategy. Clearly my portfolio would be weight to pretax contributions under the university options, but I think that would be better for a surgical specialty. Any thoughts would be appreciated--Thank you very much for your time and consideration!
Thank you all for your time and advice on this forum--I have learned a great deal from your input.
I'm starting a new position with a university and they have been sending me information on benefit enrollment plans. Two plans really stand out--they have a 403b and 401a irrevocable pretax plans that both allow up to $53,000 in pretax money. The irrevocable aspect means I have to declare how much to contribute to the plan before my first day of employment and then I am locked into that amount until I retire--I cannot change it at any time. These sound like great options to potentially put away $106,000 in pretax money, however, I have not seen plans that allow this much--they are typically capped at $18,000. I'm a little concerned about locking up that much money in an irrevocable account, but it does seem like a nice option for tax reduction.
Does anyone have experience with these plans and would you recommend them for tax purposes?
The university also has two other pretax plans that allow flexible contributions up to 18,000 each. Therefore, the university potentially allows for $142,000 pretax options. I've been trying to max out my backdoor Roth IRA contributions as well as an after tax strategy. Clearly my portfolio would be weight to pretax contributions under the university options, but I think that would be better for a surgical specialty. Any thoughts would be appreciated--Thank you very much for your time and consideration!
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