After finishing the course, I was looking into my husband’s 403b info. It’s invested in a target date fund (TC2PX) with a 0.75% fees. I looked through the available options, and none of them have fees below .50% ould I focus on Roth IRA, HSA, and then the 403b? Should I try to contact HR and see if they would consider opening up lower fee options?
Is he a teacher? I would check if they have a 457(b) plan.
Both are often offered by public-sector and nonprofit organizations, which typically don’t offer 401(k) plans. With both plans, you can contribute up to $19,500 as of 2021.2 And if you’re over the age of 50, you can contribute an additional $6,500.
I’m a big fan of 457 (b) plans, when a participant of these plans wants to make a premature withdrawal, there is no 10% tax penalty as long as it is for a qualifying hardship or the participant has separated from their employer. If they meet either of those requirements, then the only tax the member of a 457(b) plan pays is a standard income tax.
I’ll check with HR, but I’m pretty sure there’s not a 457 option. It’s a private, liberal arts college. They offer a 403(b) plan, but the fund choices we have access to all have relatively high fees.
Hey @shelleym!
I’ll cover this in tonight’s office hours (7/21/2021) with the recording available afterwards on the course site!
If you’re not signed up for office hours, you can sign up here.