What is better: a 403(b) or Roth IRA?

A 403(b) might be a better option if you get an employer match or have more money to save beyond the $7,500 contribution limit for Roth IRAs. However, a Roth IRA might be better if you want access to more investment options or want to avoid required minimum distributions, which apply to traditional 403(b)s starting at age 73 or 75 depending on your birth year but not to Roth accounts.

Should I convert my 403(b) to a Roth IRA?

To convert a 403(b) to a Roth IRA, you either need to be 59.5 or have left your job. You might consider converting your 403(b) to a Roth IRA if your 403(b) comes with high fees or you want to access your contributions before retirement.

Should I contribute to 403(b) pretax or Roth?

You might consider a traditional 403(b) if you want to reduce your taxable income in the year you make the contribution. However, a Roth 403(b) might be more appealing if you want tax-free withdrawals in retirement.

Is a 403(b) a good retirement plan?

A 403(b) can be a solid option for a retirement plan, especially if it has low administrative costs, comes with an employer match and offers investment options that align with your goals.