View Single Post
Old 06-21-2013, 03:16 PM   #7
iloveyou
Registered User
 
Join Date: Jun 2013
Location: NC
Posts: 12
My Ride: 96 Maxima
Quote:
Originally Posted by Wraisil View Post
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.
My company matches up to 5%. So I should max out my Roth and do 5% in 401k and any left over put in my 401 K even though it wont be matched ?
iloveyou is offline   Reply With Quote