403b or 401k

[dczech09]

Keep in mind that these are INDIVIDUAL accounts. SHE should be putting 15% of her gross income in HER Roth and 403(b). Just because you're putting money in YOURS, it doesn't cover HER.

It's a TERRIBLE idea to only put retirement funds in ONE person's account.

I agree and disagree. Don't get me wrong: in general, you are right. However, it does matter how the OP and their spouse handle their finances.

If they completely share their finances, then it really does not matter which account they put the money into. As long as they are putting 15% of their household income into retirement savings, then that is great!

If they are separating their finances, then yes, they should absolutely put retirement funds in separate accounts appropriately.

It all depends on the household, how they run their finances, and how they have decided to manage their retirement. Communication is more important.

[sandrark]

I disagree. If they ever divorce, it's easier to have the assets split equally in the retirement accounts. Funding one person's IRA to the detriment of the other isn't wise.

[Petunia 100]

I disagree. If they ever divorce, it's easier to have the assets split equally in the retirement accounts. Funding one person's IRA to the detriment of the other isn't wise.

A QDRO (Qualified Domestic Relations Order) takes care of that. A QDRO is an order issued by the court to transfer part (or all) of a retirement account to another person. The transfer is a non-taxable event. Once the funds are transferred, the recipient can roll them to their own IRA, cash them in, whatever.

[sandrark]

A QDRO (Qualified Domestic Relations Order) takes care of that. A QDRO is an order issued by the court to transfer part (or all) of a retirement account to another person. The transfer is a non-taxable event. Once the funds are transferred, the recipient can roll them to their own IRA, cash them in, whatever.

I understand that. Note that I said it's EASIER.

If both have substantially equal amounts in their accounts, there is no need for a QDRO.