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Old 01-16-2020, 01:55 PM   #51 (permalink)
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Quote:
Originally Posted by 904_runner View Post
I am around the same age as you, I currently contribute 10% to a Roth 401k. Company matches 6% which goes into a non Roth account. I also max out my Roth IRA every year, and contribute to an HSA. I have thought about switching to a traditional 401k for tax benefits and to have a little more money in each paycheck, but I am undecided. I guess I question if it is the best decision at my current income level to have two different Roth retirement accounts.

If I was sitting slightly above the next tax bracket I would switch to traditional 401k to lower my taxable income into to the lower bracket.

I really should go sit down with a financial advisor.
I'm a little on the fence on that. My experience has been that advisers ask me "what my goals are" and "what I would like to do".
"Deliver pizza's, retire at 21 and get 1,000,000 a year till I'm 120 years old with no risk" isn't a good answer for them so I decided just to read and educate myself as much as possible for my situation. The one I talked to didn't even know that I could contribute twice the 401k limit, was the first he'd heard about it. That was enough for me.

Just about everything you read initially says Roth is the way to go because income tax is forecast to go up and they expect you to want to withdraw 80% as much in retirement as you do now, but it depends on how you plan on living in retirement, and what state.
I gave up trying to understand it and split it.
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Old 01-16-2020, 02:25 PM   #52 (permalink)
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People must be making pretty good money to be able to afford 19,500 to go into a 401K every year. Thats over 1/3 of my salary. Or im just poor. I feel im living cheap, my newest vehicle is 2008. everything but the house is payed for.
Marry a suga-momma! Kidding, but having two incomes in a single house, MFJ, does help with saving. We definitely keep the frivolous purchase down as much as possible in order get money into retirement and savings as early as possible in our careers. No payments (except house which is almost 50% paid off on a 3.3% loan). We still have toys, they are just from the 70's and were either free or very cheap.
While I was in grad school and she was in pharmacist school we lived on my grad school stipend, did odd jobs for hustle money, and her scholarships. Our goal has been to live similarly to that since we got big kid jobs and save the rest. If it weren't for the kids, house, and some fun projects and trips now and then we'd still be on track to retire by 45 (457b allows for penalty free early withdrawl, plus other investments). That idea has vanished.
With my luck I'll keel over at 58 and never get to enjoy a dime of it.
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Old 01-16-2020, 05:14 PM   #53 (permalink)
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Not necessarily. Income level needs to pretty high 200+ and need to have control of the 401k, but much higher tax deductible amounts are available. As mentioned, not for everyone

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Old 01-16-2020, 06:33 PM   #54 (permalink)
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I rely more on cash stuffed in buried coffee cans than the "imaginary" stock market $$.

I have an IRA, but its money I don't expect to ever see again.

I'm not scraping every cent to horde for "when I retire". I'll enjoy life now. Who knows, I may get run over by a busload of nuns next week.

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Old 01-16-2020, 06:53 PM   #55 (permalink)
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Just looked, it was 23.9%

More than I made in a year from my job. Happy with that.
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Old 01-16-2020, 08:58 PM   #56 (permalink)
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I am retired and needed to roll over my 401K into an IRA. I was able to keep all my companies stock in this transaction. The Target Date junk was used to buy into some good looking dividend paying ETFs.

I loved the security of the 401K, but this new IRA has a nice set of investment titties to play with.
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Old 01-21-2020, 09:07 AM   #57 (permalink)
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Quote:
Originally Posted by 904_runner View Post
I am around the same age as you, I currently contribute 10% to a Roth 401k. Company matches 6% which goes into a non Roth account. I also max out my Roth IRA every year, and contribute to an HSA. I have thought about switching to a traditional 401k for tax benefits and to have a little more money in each paycheck, but I am undecided. I guess I question if it is the best decision at my current income level to have two different Roth retirement accounts.

If I was sitting slightly above the next tax bracket I would switch to traditional 401k to lower my taxable income into to the lower bracket.

I really should go sit down with a financial advisor.
Ive been doing more research on the matter and decided that the Roth was the right path. Then I have been noticing that the company match wasn't quite what I thought it should be. In carefully reading our contract, the company contributes 2% no matter what. However they do not contribute the 50% match up to 4% with the Roth option. So in my case I am missing out on 2% matching right now.

I don't really know what the best option is, its hard to know the future. I am thinking about switching to 8% traditional and keeping the balance of my contribution in the Roth. It seems I need to take full advantage of the match, even as little as it is. In my case that's about $1,200 a year I am currently leaving on the table.

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Old 01-21-2020, 01:02 PM   #58 (permalink)
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Quote:
Originally Posted by comeonstart View Post
Ive been doing more research on the matter and decided that the Roth was the right path. Then I have been noticing that the company match wasn't quite what I thought it should be. In carefully reading our contract, the company contributes 2% no matter what. However they do not contribute the 50% match up to 4% with the Roth option. So in my case I am missing out on 2% matching right now.

I don't really know what the best option is, its hard to know the future. I am thinking about switching to 8% traditional and keeping the balance of my contribution in the Roth. It seems I need to take full advantage of the match, even as little as it is. In my case that's about $1,200 a year I am currently leaving on the table.
Can you contribute to both a Roth 401k and traditional and still get the full match?
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Old 01-22-2020, 08:11 AM   #59 (permalink)
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Can you contribute to both a Roth 401k and traditional and still get the full match?
Yes, I set it to get the full match traditional and roth for the rest of the amount.
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