403(b), 457(b) or Roth IRA: which comes first in residency?
There isn't one right order, and the sources that rank these accounts disagree. It turns on a few things you can find out in one conversation with HR: whether your program matches, what each plan's funds cost, whether the plans offer a Roth option, which kind of 457(b) you have, and how long you'll stay.
Each account has its own limit, so for most residents the real question is where the money you can spare goes first, not which account you're allowed to use.
What does each account ask of you?
| 403(b) | 457(b) | Roth IRA | |
|---|---|---|---|
| Who offers it | Public schools and certain tax-exempt employers, such as nonprofit hospitals | A state or local government employer, or a tax-exempt employer | You open it yourself, at a firm you choose |
| How it's taxed | Pre-tax, unless you choose a Roth option the plan offers | Pre-tax, unless the plan offers a Roth option | You put in money you've paid tax on; qualified withdrawals are tax-free |
| Employer money | Your employer may contribute | Ask HR | None |
| 2026 limit | $24,500 | $24,500, separate from the 403(b) | $7,500, or your taxable pay if lower |
| When you leave | Can be rolled over | Depends on the kind: see below | It's yours; nothing to move |
The 457(b) has its own limit, separate from your 403(b), so a resident with both can put money into each. Few budgets in training stretch that far, which is why the order question comes up at all.
Why do the answers I find disagree?
Because they weigh different things, and both are real. Some put the 403(b) first, for the match or for better funds. Others put a 457(b) first because, once you leave the employer, payouts from a governmental 457(b) aren't subject to the 10% additional tax that applies to most early withdrawals from a 403(b).
Which reason wins depends on your plan, not on a rule of thumb. A match changes the answer. So does a 457(b) from a nonprofit hospital, where the money stays the hospital's until it's paid out and can't be rolled over. Should I use my hospital's 457(b)?
Which questions decide it for me?
- Is there a match, and on which plan? Employer money is the one part of this you can't get anywhere else. Ask what it takes to get all of it, and when it becomes yours to keep.
- What do the funds cost? Fund costs differ from plan to plan, and they come out of your balance every year.
- Is there a Roth option? Paying tax now, at a resident's salary, is the case people make for Roth. Whether the plan offers it decides whether you can use it there or only in a Roth IRA.
- Which kind of 457(b)? Governmental and tax-exempt 457(b) plans differ on trust, creditors and rollovers.
- How long will you stay? A three-year residency followed by a fellowship elsewhere means you'll leave both workplace plans. What each does when you go matters more than it looks on day one.
Can I contribute to a Roth IRA on a resident's salary?
You need taxable pay to contribute, and a resident has it. In 2026 the limit is $7,500 (more from age 50), or your taxable pay for the year if that's lower. The limit covers your traditional and Roth IRAs together.
Roth IRA contributions are also limited by income. For 2026 the amount you can put in phases out between modified adjusted gross income of $153,000 and $168,000 if you're single or head of household, and between $242,000 and $252,000 if you're married filing jointly. Other filing statuses have their own ranges. The income limit is more likely to matter for a resident married to a higher earner, and for everyone once attending pay starts.
Does pre-tax or Roth change my student loan payments?
It can, if you're on a plan that bases your payment on income. Under the Repayment Assistance Plan, for example, your payment is a percentage of your income, most commonly your adjusted gross income. How a pre-tax or Roth contribution shows up in that figure is a question to take to your loan servicer or an advisor before you choose, with your own numbers. For the loan side, see student loans and debt strategy.
This page doesn't rank the accounts or tell you which to use. It gives you the questions that decide the order for your plan.
Questions to ask HR before you fill in the benefits form
- Is there an employer match or contribution, and on which plan: the 403(b), the 457(b) or both?
- How much do I need to put in to get the full match, and when is the match mine to keep (vested)?
- What do the funds in each plan cost, and are there plan fees on top?
- Does the 403(b) or the 457(b) offer a Roth option?
- Is our 457(b) a governmental plan or a tax-exempt (non-governmental) plan?
- What happens to each account if I leave after residency, and can it be rolled over?
- Can I change how much I put in during the year?
alooola.com/guides/403b-457b-or-roth-ira/
- Internal Revenue Service, IRC 403(b) tax-sheltered annuity plans, last reviewed Jan 30, 2026.
- Internal Revenue Service, How much salary can you defer if you're eligible for more than one retirement plan?, last reviewed Feb 26, 2026.
- Internal Revenue Service, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500, IR-2025-111, Nov 13, 2025 (2026 limits and Roth IRA income ranges).
- Internal Revenue Service, Retirement topics: IRA contribution limits, last reviewed Sep 23, 2026.
- Internal Revenue Service, Roth IRAs, last reviewed Aug 9, 2026.
- Internal Revenue Service, Comparison of tax-exempt 457(b) plans and governmental 457(b) plans, last reviewed Aug 1, 2026.
- Internal Revenue Service, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs, last reviewed Sep 24, 2026.
- U.S. Department of Education, Federal Student Aid, One Big Beautiful Bill Act: important definitions (Repayment Assistance Plan), last updated Aug 24, 2026.
General information, not advice for your situation. Rules and figures change; each source is dated.
Talk it through with an advisor.
- Pick a time that suits you, by video or phone.
- Bring the question and whatever documents you have to hand.
- Leave with a clear next step. What you do with it is up to you.