401k Help

[Black_Swan]

@higgmond

It’s $18k all in, which you can split between traditional 401k and Rtoh 401k (if offered) anyway you want. Normal Roth limitations do not apply.

The guy I talked to explicitly said its $18k each, he could be wrong though.

[Sweep_the_Leg]

@Yayyywork

Also not sure what your 401k is like but for the majority of people IRA >>>>>>> 401k as the investment options in many/most 401ks I have ever seen blow monkey balls. So i think the rule of thumb is 401k up to your employer match then IRA/Roth up the the max is the ideal scenario. If you want to contribute more then to retirement you can put more in your 401k

The amount you save is much more important than what you put it in (within reason). For example, every 401k is going to have a target date line-up. Maybe the one in your 401k isn’t the best, but as long as you save 15% of your annual income, it won’t make a huge difference compared to only saving a third as much in an IRA to get Vanguard pricing on their target dates. Plus the whole company match thing.

[igor555]

@Yayyywork

Also not sure what your 401k is like but for the majority of people IRA >>>>>>> 401k as the investment options in many/most 401ks I have ever seen blow monkey balls. So i think the rule of thumb is 401k up to your employer match then IRA/Roth up the the max is the ideal scenario. If you want to contribute more then to retirement you can put more in your 401k

my cagr is 14.31%. i think a lot of the 401k plans have pretty decent selection unless you work for some small company.

i max out to the IRS limit that way i know im not excessively trading with the rest and sticking with my 1/n diversification

[Yayyywork]

as far as match what are you guys getting? Pretty much any company ive ever worked for has a pretty lame match thats like 100% up to 4-5% its not that fantastic.

[krnyc2008]

@StallionDis

Roth is phased out though for BSDs.

Then you can do backdoor roth

[system]

i got 8% match bros, come at me

[krnyc2008]

@Yayyywork

as far as match what are you guys getting? Pretty much any company ive ever worked for has a pretty lame match thats like 100% up to 4-5% its not that fantastic.

That’s pretty standard. Can’t complain - it’s free money

[IsThereAny]

@krnyc2008

@StallionDis

Roth is phased out though for BSDs.

Then you can do backdoor roth

[Robotech]

@Black_Swan

@higgmond

It’s $18k all in, which you can split between traditional 401k and Rtoh 401k (if offered) anyway you want. Normal Roth limitations do not apply.

The guy I talked to explicitly said its $18k each, he could be wrong though.

I think that guy is wrong, or his message was misinterpreted. It’s $18k max. You pick pre-tax, after-tax, or mix.

[Robotech]

@StallionDis

i got 8% match bros, come at me

6% match plus a 5% pension contribution (Treasuries).

[igor555]

@krnyc2008

@StallionDis

Roth is phased out though for BSDs.

Then you can do backdoor routh

ftfy

[krnyc2008]

@Black_Swan

@higgmond

It’s $18k all in, which you can split between traditional 401k and Rtoh 401k (if offered) anyway you want. Normal Roth limitations do not apply.

The guy I talked to explicitly said its $18k each, he could be wrong though.

It’s 18 total. And you pick pretax or Roth

The typical suggestion for contributions order is the following:

1. pre-tax 401k 18k

2. Roth IRA (max $5500)

3. HSA if available (max $6750 for family I believe)

4. after-tax contributions to 401k (not to confuse with Roth 401k) if available and if employer allows in-service rollover to Roth (combined pretax 18k + company match + after tax not to exceed 54k in 2017)

5. taxable if you still have the money to save

[igor555]

@StallionDis

i got 8% match bros, come at me

dont want to make u cry

[ohai]

It’s true that 401k investment selection is usually not as diverse as you can find elsewhere. The best case scenario is usually when the plan is outsourced to Fidelity or similar firms, so you have access to a wide range of options.

Of course, assuming you have maxed out your 401k contribution, you should have an additional investment account anyway. You could always allocate 100% of your 401k to SPX, and then do your discretionary allocation in the second account.

[whatsyourgovt]

bros/woes, your 401k money will not exist come retirement. Just like pensions, gov’t is going to start tapping into that bucket. Spend it now while its useful - call 888.GIVWYG$.

[IsThereAny]

Just found a video on some widely unknown retirement vehicles with some interesting advantages: https://www.youtube.com/watch?v=dQw4w9WgXcQ

[krnyc2008]

@ohai

It’s true that 401k investment selection is usually not as diverse as you can find elsewhere. The best case scenario is usually when the plan is outsourced to Fidelity or similar firms, so you have access to a wide range of options.

Of course, assuming you have maxed out your 401k contribution, you should have an additional investment account anyway. You could always allocate 100% of your 401k to SPX, and then do your discretionary allocation in the second account.

Agree. Also it’s best to try to place FI portion in 401k for tax efficiency purpose

[Yayyywork]

@krnyc2008

That’s pretty standard. Can’t complain - it’s free money

Its part of your all in comp, its not free

[Yayyywork]

Kr for the suggestions isnt it usually preferred to hit the 401k up to your match, then fund an IRA, then top off any additional in your 401k? The flexibility in the IRA is way better than the 401k and once you max out your match the tax deferral has a ton of strings attached, where your IRA has less

[hashtag]

If you think your taxes will be lower in the future, then a Traditional 401(k) is the way to go. But if you think that your taxes will be higher in the future, then a Roth 401(k) is your best bet. (Added benefit of a Roth 401k is that you can tap into into without penalty, as long as you pay it back.)

http://time.com/money/4258994/traditional-401k-roth-401k-retirement/

#TimeYoTaxes