A PGY-2 earning $70,000 can set aside $300 a month in her hospital’s 403(b), which offers traditional and Roth options and no employer match. She expects to earn $310,000 a year as an attending. For the contributions she makes during residency, which choice is most likely to leave her with more after-tax money in retirement?
Select one
Single best answer. No calculator needed.

Question

A PGY-2 earning $70,000 can set aside $300 a month in her hospital’s 403(b), which offers traditional and Roth options and no employer match. She expects to earn $310,000 a year as an attending. For the contributions she makes during residency, which choice is most likely to leave her with more after-tax money in retirement?

Select one

Single best answer. No calculator needed.

Accepted Answer

Roth (after-tax) contributions

Answer

Traditional (pre-tax) contributions

Answer

Either — the outcome is the same

Answer

Neither — wait for attending income before investing