403b versus other retirement vehicles?

[Rosehip]

I just started a new job @ a hospital. I signed up for 10% to go to the 403b (which is what I did when I worked at a place with a 401k previously). It is extremely unlikely that I will be there long enough to be vested in any of the hospital's match. I would have to be there for 4 years. I plan to return to school for a MS in 2 years, 3 years max, and the 2nd year of the MS is f/t & I will have to quit whatever job I have.

Someone mentioned to me that 403bs tend to be "expensive" plans. I wasn't sure what he meant & didn't ask at the time, and won't have the opportunity to do so.

Anyway, it gave me pause. None of the funds that the plan offers look terribly enticing, and most are pretty new so don't have a long track record. I'm wondering if I might be better off just taking my whole paycheck & either contributions myself into either a traditional IRA (I have one already) or a Roth IRA, which I'm planning to start either through contributions or by rolling over a 401k I have - I'm working out tax implications now.

Any thoughts? Anyone familiar with 403bs?

ETA: Having the $$ deducted from my paycheck is convenient, but not a huge deal for me. I'm pretty good at saving, and will be able to budget my savings either way.

[sunnysandiegan]

Here is something to ponder:

The legal limit of contributions to an IRA (or Roth....total combined) for the year is $5K. If your 10% going into the 403b is less than that, then the details of your specific 403b plan would be the deciding factor for me...but not contributing to that plan would be my default plan of action due to the timeframe you mentioned. If your 10% going into the 403b is greater than $5K for each year, then I would be more likely to go that way because you can sock more away under the retirement umbrella and it is pre-tax...so your withholdings are lower NOW (combined tax savings)...but it does depend on the finer details. Does your IRA (or proposed Roth IRA) have an annual fee? Is it equal to or less than the annual fees associated with the 403b? Fund options are important, too, as you already mentioned.

FWIW, you can set up automatic investments for your IRA (or Roth IRA) in most cases.

[Geigerin]

403b plans are commonly 'expensive' now that regulation has made them more like 401k. That means you are probably paying a high annual fee and/or a high expense ratio on the funds in your portfolio. Also, you have less flexibility in a financial emergency. My Roth has a $10 annual fee, and the expense ratio is very low. (and good long-term performance record). Also, if we had a major emergency, contribs come out tax and penalty free.

Like pp said, if you're contribs are 5k or less per year, you can just do the Roth.