I work as a teacher in CA and expect a pension when I retire in ~30 years. I also put a $300/mo into a roth 403b. My wife has pretty robust 401k and Roth IRA accounts. Should I open a Roth IRA through someplace like Vanguard or is it fine to rely on the 403b and pension?
Do I need a separate roth IRA in addition to roth 403b and teacher's pension?
byu/Archimedes-24 inpersonalfinance
Posted by Archimedes-24
2 Comments
If you have a good 403(b) vendor (good investment options, low fees, etc.), then it’s fine to stick with it, and increase contributions if you want to save more.
If your 403(b) vendor is bad, you should either switch to a better 403(b) or to a Roth IRA.
If you ever get to a point where you are hitting the maximum contribution limit, you can consider contributing to both a 403(b) and a Roth IRA.
Roth IRA has a 5-year rule. If you wait until retirement age to open one and then roll your roth 403 to a roth ira, you may have to wait the 5 years to remove money. If you start a roth ira earlier, you avoid this, plus it never hurts to have another account that grows tax free