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wegotdatwood
Member since Aug 2009
17094 posts

ETA- How much should I put in 401k? Should I go 401k roth or regular?

Tia
This post was edited on 4/24 at 9:48 pm



LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
1274 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
Hope so, I certainly do.


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DaBeerz
LSU Fan
Billsburg, VA
Member since Sep 2004
10575 posts
Online

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?


You could have found the answer for this by the time it took you to type this


wegotdatwood
Member since Aug 2009
17094 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
What do you do?


Good to have a one traditional set up and one roth? Or should I go Roth on both?

I doubt I'll ever make too much to contribute to a Roth.

It seems nice to lower our taxable income even though the rate now will be less than down the road.


acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
I'm curious to see how maxing out works for using these in conjunction if someone in the know could weigh in.


wegotdatwood
Member since Aug 2009
17094 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
Also, my wife's work will start matching 5% after 1 year.

I was thinking do 10%? She makes about 40 a year. That would be 6k a year and hopefully max out the roth.



tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
5070 posts
Online

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
1) contribute up to the max that your company matches. You will not find a better ROI that the initial match (have your wife do the same to hers as well)

2) depending on your age, and what others say here, i would then try to max the yearly contribution to your ROTH

3) if you are still young, and dont have the income to save more, then each time you get a raise, then up a portion of that raise into your 401k. the more you can put in now the better


wegotdatwood
Member since Aug 2009
17094 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
I decided for her to do 10%. Her company only matches 5% but I always like to do a little more. Plan on still maxing the roth.

From her end, that's about 11k a year saved.


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OnTheBrink
Alabama Fan
TN
Member since Mar 2012
4669 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
quote:

then each time you get a raise, then up a portion of that raise into your 401k


I got a big bump a year after I started my job. Since then, it has been the standard COLA and a couple percent here and there. My point being, I have not technically gotten a raise since my first year because I up my 401k contribution to offset the raise.

If you dont need the money from the raise, I think it is a sound strategy.


BayouBengal
LSU Fan
München
Member since Nov 2003
26863 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
401k is pre-tax so it's nice that it reduces your taxable income. I'd say put in at least the amount that your employer will match. Roth IRA is post tax so if you expect to be in a higher tax bracket once you retire it's good.


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Tmacelroy12
LSU Fan
Houston
Member since Aug 2012
5489 posts

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
I don't think my company contributes to our 401k until you've worked like 6 years or so

So what I'm doing right now is investing 10% every paycheck into a Roth account and 5% into a traditional

My thought process is that I'll be paying higher taxes in the future, so I want to shelter as much of that money as I can by paying taxes on it in the present ( while I'm in a lower tax bracket).

Honestly, I don't really think it'll make too much of a difference. The real key is to save often and save as much as you can afford to.


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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
22348 posts
Online

re: ETA- How much should I put in 401k? Should I go 401k roth or regular?
quote:

I got a big bump a year after I started my job. Since then, it has been the standard COLA and a couple percent here and there. My point being, I have not technically gotten a raise since my first year because I up my 401k contribution to offset the raise.


Strange that it seems you have to manually "up" it.

I told them to take the match percentage out of my income. I get a "bonus" every other paycheck and it scales accordingly taking out more on those paychecks than the ones in between.


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