Question : Is it better to put retirement savings in a Roth IRA or tax-sheltered annuity?
My employer offers a 401(a) pension plan to which they make contributions. I plan on enrolling in this so that I will get the max contribution from them. For other retirement savings, they also offer a tax-sheltered annuity 403(b) plan. Would it be better to contribute to a Roth IRA or participate in the 403(b) plan for my retirement savings?
- asked by honey
All Answers:
Answer #1
That is a question that will vary depending onyour personal financial information. For most,the Roth would probably be the best vehicle,because of the lower fee structure and thetax-free distributions available after age 59 anda half. However, there are situations in whichthe 403(b) is also an appropriate vehicle. Thatis a situation that you should talk to a personalfinancial advisor so that you can review youroverall goals and financial situation and thenmake an informed decision. It also depends onwhat funds are available in each. If there arebetter-suited fund choices in the 403(b)portfolio, then perhaps maxing out the 401-k tothe employer's matching portion is good, theninvesting the rest into the 403(b) for a moresuitable return.Many questions are fairly easy toanswer here, but this one requires too muchpersonal information to be given over theinternet. Not good.
- answered by joeiselvis
Answer #2
Put into your 401(k) the minimum amount necessaryto collect the maximum firm contribution. That'sfree money they're giving you.Next, get a ROTH IRAand max it out every year. Tax free forever. That's free money too.If you can do more, then goback to your 401(k) and max that out to the legallimit.If you can still do even more, then considerother options.Take advantage of all the free moneyyou can.
- answered by Beverly
Answer #3
Annuities are (very generally) a bad idea unlessyou are already old, or you are the agent sellingthem. (They pay terrific commissions to thesalesperson!) A Roth (invested in growth or growth& income stocks) will make you far richer lateron...
- answered by Thin Kaboudit
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measure and fulfill your financial needs
