403B vs Roth 403B with Vanguard
I am in the midst of trying to learn about best retirement planning and investing. I am late to the game, but never too late. Since YNAB changed our life 2years ago we've pulled out of a ton of debt and are now in the save/retirement mode.
My wife and I (both in our 40's) both work at a non-profit which offers 403b and/or Roth 403B via Vanguard. This was just made available in 2018. We put in the maximum amount that allowed for our full-employer match in 2018 and are on track for doing so also in 2019.
I have gone through Jesse's investment series, read The Simple Path to Wealth, and am just trying to get my hierarchy for deploying our investment money. Since the Roth 403B is really new, I can't find much to read on it, but assume it acts very much like a Roth 401K.
Through Vanguard I am allowed to allocate how much from my account, as well as my wife's, goes into our employer 403B or Roth 403B, and don't know which I should put our money in.
We started with the 403B, and then switched and most of it is now in the Roth 403B, which if I understand correctly, is taxed now and not at retirement withdrawal, BUT the "matched" portion from my employer WILL be taxed at withdrawal at retirement.
Does this sound correct?
My questions are as follows:
(1) Should I fund my employer-matched 403B, or Roth 403B or some combination of the two?
(2) Should I only fund #1 up to my employer match and then fund a personal Roth IRA (or a personal Vanguard account) OR keep funding #1 past my employer-match? My gut tells me to fund beyond my #1 employer-matched 403B/Roth 403B since it is with Vanguard
Either way, would love any thoughts, insights, or recommendations appreciated!
Here are a couple more things to read about Roth vs. Traditional. They talk about 401k, but 403b is essentially the same.
The Finance Buff: https://thefinancebuff.com/case-against-roth-401k.html
As for funding order of accounts, this is a good read over at Bogleheads:
For most people, Traditional will be the right choice for 401k/403b, unless they are early in their career and will have a huge increase in income (like a resident medical doctor who makes little but after a few years goes into practice with a very high income).
For IRA, it's a little more complicated, because the ability to deduct a Traditional IRA contribution phases out at certain income levels, and so does the ability for a direct Roth IRA contribution. At that point, there is a process for getting money into a Roth IRA, but having non-taxed money in a Traditional IRA can make that process prohibitively expensive.... so in general I recommend IRA contributions be Roth.