SavingsTalk.com

gooner · 10-31-2007, 03:25 PM

My company is offering this plan to its employees-if you work for the company less than 15 years and you contribute 4% of your salary, the company will then contribute an additional 25% of that contribution up to 1% of your salary.<br /><br />I currently have a 401K plan from my old employer that just sits and collects on mutual funds until I am old enough to claim it. I rolled over what I contributed when I left into a Roth IRA through my bank. Would I be bouncing around too much having an additional retirement plan or would it be beneficial to get what I can?<br />

kevin · 10-31-2007, 03:25 PM

Any retirement plan that offers a company contribution in addition to your own is a very good deal. You should maximize your contributions to get the maximum match from your employer. Your 401K is another matter and should not be a factor in your new 403b decision.

chicago_bull · 10-31-2007, 03:25 PM

Take advantage of everything you can. Sit down and figure out what you have lost so far by not taking advantage of it. Talk to someone in your company who can explain it to you. My boss once told me that you can contribute 6 percent of your income to a retirement plan and never miss it. He was right. Go for it.

kevin · 10-31-2007, 03:25 PM

No, a 403 B is a good way to save for retirement. You get a tax deferral and the company match is rare for a 403 B which serves the non profit industry.

Go for it! One suggestion is to make sure your investments are well diversified. One problem with 403 B deferments is that they tend to be offered by large insurance companies. Depending on your age, don't lock yourself into an annuity.

Ask the fund manager how many different funds are available for you to pick.

natali · 10-31-2007, 03:25 PM

If you wish to be as rich as you can, don't turn down FREE money! If your current employer offers a match, take it; if you don't, you are basically declining a pay increase!

There is nothing wrong with having two sets of retirement savings, one in a self-directed IRA, and one with a current employer. It makes no sense to have half-a-dozen plans, however, so if/when you leave this job, you should roll out whatever qualified deferred contributions you have to the same IRA.

Good luck!

10-31-2007, 03:25 PM	#1
gooner Piggy Bank Join Date: Jul 2006 Posts: 75 Rep Power: 6	Should I take advantage of my company's 403(b) program being offered? My company is offering this plan to its employees-if you work for the company less than 15 years and you contribute 4% of your salary, the company will then contribute an additional 25% of that contribution up to 1% of your salary.<br /><br />I currently have a 401K plan from my old employer that just sits and collects on mutual funds until I am old enough to claim it. I rolled over what I contributed when I left into a Roth IRA through my bank. Would I be bouncing around too much having an additional retirement plan or would it be beneficial to get what I can?<br />

10-31-2007, 03:25 PM	#2
kevin Greenhorn Join Date: Jul 2006 Posts: 26 Rep Power: 6	Should I take advantage of my company's 403(b) program being offered? Any retirement plan that offers a company contribution in addition to your own is a very good deal. You should maximize your contributions to get the maximum match from your employer. Your 401K is another matter and should not be a factor in your new 403b decision. Last edited by titan22; 06-06-2008 at 05:05 PM.

10-31-2007, 03:25 PM	#3
chicago_bull Piggy Bank Join Date: Jul 2006 Posts: 60 Rep Power: 6	Should I take advantage of my company's 403(b) program being offered? Take advantage of everything you can. Sit down and figure out what you have lost so far by not taking advantage of it. Talk to someone in your company who can explain it to you. My boss once told me that you can contribute 6 percent of your income to a retirement plan and never miss it. He was right. Go for it.

10-31-2007, 03:25 PM	#4
kevin Greenhorn Join Date: Jul 2006 Posts: 26 Rep Power: 6	Should I take advantage of my company's 403(b) program being offered? No, a 403 B is a good way to save for retirement. You get a tax deferral and the company match is rare for a 403 B which serves the non profit industry. Go for it! One suggestion is to make sure your investments are well diversified. One problem with 403 B deferments is that they tend to be offered by large insurance companies. Depending on your age, don't lock yourself into an annuity. Ask the fund manager how many different funds are available for you to pick.

10-31-2007, 03:25 PM	#5
natali Greenhorn Join Date: Jul 2006 Posts: 31 Rep Power: 6	Should I take advantage of my company's 403(b) program being offered? If you wish to be as rich as you can, don't turn down FREE money! If your current employer offers a match, take it; if you don't, you are basically declining a pay increase! There is nothing wrong with having two sets of retirement savings, one in a self-directed IRA, and one with a current employer. It makes no sense to have half-a-dozen plans, however, so if/when you leave this job, you should roll out whatever qualified deferred contributions you have to the same IRA. Good luck!

SavingsTalk.com

Your guide to saving money and making smart investments!