[USER]

I realized that I need to start contributing more to my retirement. Currently my salaried income is $110K and I’m contributing 7% to my companies 5% match. I have room to start contributing more as my savings and investments accounts are well-cushioned for emergency and discretionary.

My question is do I contribute to a ROTH IRA, increase my 401K contribution, or somewhere in the middle?

[Ross]

Max the Roth IRA and choose the Roth option in your 401k too, if it’s available.

[Justin]

Depends on when you want to use the money and how good you are at investing. If you want to use it before 59.5 or 55 yrs old, a regular brokerage. But you’ll lose out on a lot of tax advantages that you can never get back.

Contribution limits for retirement accounts. IRA or 401k? If your IRA returns consistently outperform your 401k, then that’s where you’ll make the most money. Roth vs Traditional, either IRA or 401k?

That one is a little more complex, but one easy answer: if you contribute the max, you’ll have spending money in retirement with Roth money because the taxes are already paid. The other way I think about it…do you want to pay the tax now while you are working or in retirement?

Don’t miss: Contributing to IRAs in retirement? Doable?

[Ryan]

Max Roth first $6500 a year. Then up 401k as much as you can go.

[Richard]

If you’re not maxing the Roth, do that first. But don’t give up the 5% match. Invest up to the match in your 401k, then Max the Roth. If you have more left, up your 401k.

[Brandon]

Max roth, then max 401k.

[Sean]

• 401k to match
• Max hsa
• Max Ira
• Max 401k
• Taxable brokerage.

This is after the EF that you said you have, and assumes no high interest debt.

[Evelia]

The window to contribute to Roth depends on income. By the time I understood that, I had already exceeded the income limit to be able to contribute to a Roth IRA. Otherwise you may find yourself looking at ways to convert some of your 401k into Roth IRAs to lower your taxes at a later date. This is an important consideration.

[Author]

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