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How much to they match? 25%, 50%, dollar for dollar?
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401k-Roth IRA- company doesn't have matching.....????
- Thread starter jpm2953
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This is what my wife and I have been doing. We do 401k and then cut a check to a Roth IRA yearly. I just now am able to max out mine (2 years on a new job), and she has for the last several years. Up until then, I didn't get to put away that much.
Dollar for dollar on the 3%, but our 401k comes out on just our 40 hours, not OT.
This is interesting.
Required Minimum Distributions
Once you reach age 70½, you will be required to take a minimum distribution from a traditional IRA. The IRS has very specific rules about how much you must withdraw each year. This is called the required minimum distribution (RMD). If you fail to withdraw the required amount, you could be charged a 50% tax on the amount not distributed as required.
You can avoid the RMD completely if you have a Roth IRA. There are no RMD requirements for your Roth IRA, but if money remains after your death, your beneficiaries may have to pay taxes. There are several different ways your beneficiaries can withdraw the funds, and they should seek advice from a financial advisor or the Roth trustee.
https://www.investopedia.com/articles/personal-finance/021015/how-much-are-taxes-ira-withdrawal.asp
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Excellent. Obviously put in at least the 3%. Free money.
I max mine out at the moment. I couldn't do that on a Roth 401k if the limit is the same. I need to do some studying it sounds like. I want to call it quits in 21 more years!
Not sure what you're saying but if you can only do one or the other, get the matching first!
Nevermind I figured out the missing word lol. The limit is different for the ROTH.
Add Vanguard to the mix too, very low expense costs on their funds. I have money with Vanguard and Fidelity. Rolled over 401k funds from old jobs and also set up a SEP-IRA when I had my own consulting business.
Save as much as you can, nobody ever complained about having too much money in retirement. Very rough figuring is $250k in assets provides $1000/month in retirement income. With RMD's from investment accounts and SS retirement the wife and I make about $65k in retirement income. Small mortgage left, no car payments. Its very manageable.
RMD sounds scary, but it is pretty benign. If you have $250k in pre-tax account funds, currently you will be required to withdraw about $900/month as your RMD. The formula adjusts every year, and is based on the account value on December 31st of the year. This is about where my wife is, she pays 10% toward Federal Income Tax, so she gets a net deposit of $810 per month.
RMD sounds scary, but it is pretty benign. If you have $250k in pre-tax account funds, currently you will be required to withdraw about $900/month as your RMD. The formula adjusts every year, and is based on the account
