I currently contribute 6% to my employer's 401k, which is the highest they match. If I want to save more, say 10%, would it be wiser to just put 4% more unmatched into the 401k or open a Roth IRA and put 4% into it?
>>1242773
You should be contributing all the money you don't need for living expenses into your retirement account. I max out a $53k 401k, a $5.5k Roth, and a $3k HSA, and I still wish I had access to more tax advantaged retirement accounts. Unfortunately, 40k a year goes into taxable assets which the government goes full jew on the earnings.
>>1242777
how much do you earn to where you can max out retirement accounts, yet still earn less than the income limit for roth?
You're lucky you're in that goldilocks zone
>>1242773
probably better in low-cost index funds in a roth IRA. compare what you would invest in if you had a roth ira to what your 401k is invested in. usually the employer sponsored plans have pretty high management fees. check out vanguard ETFs and index funds... they have some of the least expensive funds available.
Vanguard average ETF expense ratio: 0.12%
Industry average ETF expense ratio: 0.53%
>>1242773
contribute the employer match in your 401k, then a Roth.
if you are disciplined enough, (after the 60% to the 401k) you can just deposit money in an investment account each month, but most people are not disciplined enough and cash these out for large ticket items like cars and houses.
>>1242777
What employer gives you a fucking 200% match on your 401k?
>>1242965
it's actually 294% he's claiming
>>1242965
You can contribute to your 401k with your own money.
>>1243010
Not as much as he would have to if he's earning under the Roth limit.
>>1243010
You can only contribute $18k of your own money to a 401(k). From your payroll nonetheless.
>>1243010
You can contribute $18000 a year of your own money. Your employer can contribute as much as they life but the total between the two of you can't be more than $53000. Any excess deferrals above 18k have to be refunded to you because they legally can't be put into your retirement account.
>Source: I work for a retirement services company
So either you're full of shit or something shady/illegal is going on. I'm leaning towards "you're full of shit" because this is /biz/ and there's a 95% chance you're actually a NEET. If not, please prove it by posting pics of your W-2.
>>1243023
>Contributing after tax dollars to a 401(k).
You'd have to be a special kind of retard to do this.
>>1243030
there is no reason to contribute after tax dollars to a 401(k) unless you may need the protections offered by a 401(k) by law.
like bankruptcy
that's it.
>>1243036
Or if you want to convert it to a Roth.
>>1243036
But then you get all the downsides and restrictions of a 401(k) and you'll still be paying taxes on the gains.
Might as well just open up a brokerage account and throw that money in there. At least it's liquid.
>>1243041
its a foolish thing to do. I agree
After thinking about for a minute, if he was worried about bankruptcy, he would be better off with cash at home
Most likely: its some kid posting that he contributes a yuuuuge amount to his 401(k) and has no understanding of the contribution limits or how a 401(k) even works.
>>1243051
Think whatever you want. I'm sure enjoying having an extra $30k a year going into my Roth IRA.
