I am 23 years old and just started a full time job where I have enough left over income to beginning saving for retirement ($65K/year before taxes). I'm seeking advice on the best way to go about saving.
My employer provides a non-voluntary 403b plan where they pay 5% worth of my gross income into a 403b without me having to contribute at all. Strangely though, at least to someone like me uneducated on this subject, I am not allowed to contribute to this 403b. Instead, I am looking at 2 suplementary options to save more on top of this 403b.
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Participate in the voluntary 403b they also offer. Separate to the one above, I put some of my own income into a 403b each year.
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Start a Roth IRA and maximize my annual Roth IRA contributions.
I am thinking about putting 10% of my income into the voluntary 403b in addition to maxing my annual Roth IRA contributions. Is that a good idea? Also, is it not strange that I am not allowed contribute to the same 403b that my employer contributes to? Perhaps it is because it takes 5 years to become fully vested for the non-voluntary, but through voluntary is fully vested immediately. It seems like I would be losing money compared to if they were combined.
Submitted June 08, 2018 at 10:00AM by reddithorker https://ift.tt/2sCEMgT
