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Old 06-21-2013, 02:58 PM   #6
Wraisil
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Join Date: Apr 2004
Location: Acworth, GA
Posts: 215
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by iloveyou View Post
Wow! Thanks man very helpful. I am in the 25% tax bracket if that helps.
Assuming you are single and not at the very upper end of the bracket, you should (when able) contribute to your 401(k) up to the matching your company provides then invest in a Roth until that is maxed out and any leftover from your "total savings" put into your 401(k). Under $80k/year salary is "generally" more advantageous (assuming single income) to use a Roth instead of traditional 401(k)/IRA except when receiving a match. IRA's, however, have a much smaller limit than 401(k)'s for tax advantaged contributions so for many people (likely yourself included) it is best to do max the Roth contribution and then contribute any further money to your 401(k) without match to maximize tax-advantaged accounts to the highest possible/permitted by the IRS.
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