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401k/Roth IRA question
Posted on 12/9/19 at 6:44 pm
Posted on 12/9/19 at 6:44 pm
I recently started with a large company that contributes to my 401k that I just became eligible for in October. I currently have a personal Roth IRA that I am not allowed to roll into the company 401k. I don’t need two retirement accounts so I’m unsure of what to do with it.
1. Stop contributing to the Roth and just let it build
2. Take out the funds($33,000) and get hit with a penalty ($1,600)
If it makes any difference, I have a 4 month old son and need to upgrade in house size.
Use it for a better savings plan? Use it for down payment on a bigger house? CD?
Thanks in advance
1. Stop contributing to the Roth and just let it build
2. Take out the funds($33,000) and get hit with a penalty ($1,600)
If it makes any difference, I have a 4 month old son and need to upgrade in house size.
Use it for a better savings plan? Use it for down payment on a bigger house? CD?
Thanks in advance
9
Posted on 12/9/19 at 7:01 pm to tiger10lsu
You shouldn't get rid of your IRA just because you don't 'need' two accounts. At worse, stop contributing and let it grow overtime. At best, you contribute to both accounts, and you build up savings outside of the accounts.
Roth IRAs are nice because you can treat the contributions as an emergency savings account, but you should absolutely avoid tapping your retirement accounts until retirement.
Roth IRAs are nice because you can treat the contributions as an emergency savings account, but you should absolutely avoid tapping your retirement accounts until retirement.
This post was edited on 12/9/19 at 7:02 pm
Posted on 12/9/19 at 8:31 pm to tiger10lsu
Why don't you need 2 retirement accounts? A Roth IRA and 401K are completely different. It is important to have the two
Posted on 12/9/19 at 8:31 pm to tiger10lsu
quote:
. I don’t need two retirement accounts
Sure you do.
Posted on 12/9/19 at 10:02 pm to tiger10lsu
Not sure how old you but with a 4 month old it is very unlikely you have already saved enough to retire.
Posted on 12/9/19 at 10:14 pm to tiger10lsu
quote:
I don’t need two retirement accounts
What in the absolute hell?!? You need every account you can get. My wife and I have six retirement accounts between us.
Posted on 12/10/19 at 12:20 am to tiger10lsu
Option 3: Invest enough in 401k to get employer match. Then keep contributing to the Roth IRA. Open Roth for spouse. If you max both of those increase 401k contribution.
DON'T withdraw the Roth! But if you must, only take out contributions and you wont get hit w/ penalty. You'd be foolish to liquidate the Roth, start your retirement investments back at zero and lose all progress. Good on you for asking for advice.
DON'T withdraw the Roth! But if you must, only take out contributions and you wont get hit w/ penalty. You'd be foolish to liquidate the Roth, start your retirement investments back at zero and lose all progress. Good on you for asking for advice.
Posted on 12/10/19 at 6:00 am to tiger10lsu
quote:
I don’t need two retirement accounts...
I hate to pile on, but... why not?
Posted on 12/10/19 at 6:02 am to tiger10lsu
2 accounts?
I have a 403B, a 457, TSP from my Army days, IRA, Roth IRA, and a SEP IRA.
It’s not that hard to keep up with the different accounts.
I have a 403B, a 457, TSP from my Army days, IRA, Roth IRA, and a SEP IRA.
It’s not that hard to keep up with the different accounts.
Posted on 12/10/19 at 7:42 am to tiger10lsu
Have you seen the investment options in your new 401k and compared them to your IRA?
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