...Why are you better off doing that? Company matches often stop far before you've maxed out on the retirement investment limit. Roth IRAs are after-tax, but you can still reap the benefits of pre-tax retirement investing in 403(b) or 401(K) after the company match. Second only to mortgage interest and dependent deductions, maxing out on pre-tax retirement savings is probably the biggest federal tax deduction you can receive as a middle-class taxpayer.
A Roth IRA allows you to have money that grows tax free, and is accessible at any time for an emergency without penalty as long as you only use the original amount you placed in the Roth IRA. While a traditional IRA and 403b can be used as a tax break as you say, in reality you are only deferring the taxes till you are retired or 59 1/2 years old. Then you will still have to pay the regular taxes on them at that time. How much that hurts you depends on what tax bracket you find yourself in. For example if you have a house and don't pay it off and then in retirement need to take out more money from your 403b you can find yourself in a higher tax bracket and penalized at the end of the year. Whereas if you have a house paid off you can keep your yearly income lower and keep more of your money social security if not tax free at least in a lower tax bracket! This was from one of those wall street magazines several years ago.
What good is a temporary tax deferment if you find yourself in later years due to injury, illness, unemployment withdrawing money from your 403b. Then you will be taxed at your income tax rate, plus be penalized 10% federal and 10% state, at least where I live. If you put the $5,000 year in a roth IRA, all the money would be available later in life, it wouldn't be reduced by 1/3 to 1/2 with taxes in penalties.
Ask yourself what is more important a tax deduction now or tax free money in the future. Many people have been reduced to using their 401K/403B to live on since this depression started and though Congress is aware of this, do you think they bothered to give an exemption of the penalties for these poor, desparate people? No, because they don't give a damn about anyone but the rich and the big corporations. It has gotten to the point where business has all the power and us poor workers are supposed to be begging for a job and whatever scraps of a salary they want to give us. It is a sad situation in America!
Lastly, regarding loans from your 401k/403b these usually need to be paid in full once you leave an employer, or it counts as a withdrawal and you are hit with taxes and penalties! Also you will be paying taxes twice, first to pay back the loan and later in life to pay taxes on it in retirement! Some 401k/403b plans actually have been known to siphon 2-3+ % of the interest back to themselves as a transaction fee. The better plans have a one time $50-100 fee for a loan.
When you consider the disadvantages of the 401k/403b of high fees on many plans, limited choice of offerings, penalties for early withdrawal regardless of need or emergency, and the fact that if you invested after the roth and your company match if any into a straight index fund say Vanguard known for low fees, the tax rate is only 15%. And the money is available whenever you need it!
You can say the govt is penalizing us for our own good, but you don't know the future and given how workers are at the mercy of age, illness, injury and unemployment and job security has become a thing of the past, I want to know that the money I need will be available when I need it without jumping thru hoops and getting penalized! If Congress wouldn't do a waiver when we are in the middle of a depression for all they claim otherwise, I think your better off doing a ROTH IRA and then considering regular investments rather than putting your money in a second class, high fee 403b with a lot of gotcha's! Just my own opinion!