quote:
Are you sure you're getting full match even after hitting employee contribution limit early? Some employers offer "true up" at end of year. Others only match during pay periods you contribute so maxing early in year could mean losing out on full year's match.

Yes, even after I hit my max contribution, they still do the 4% every check.

On the IRA, I do have a separate IRA and a regular brokerage account that I dabble with. Probably under $100k combined. I've never put much effort into the IRA for either myself or wife as our AGI is over the max limit to get any kind of deduction on taxes. So it's been an afterthought really.

I'd rather put the money into the brokerage account as I can access it in extreme emergencies with only paying taxes on the gains vs the IRA withdrawal of 10% plus the gains. Unless I'm missing something there.

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Posted by SwampCollie

Louisiana

Member since Nov 2018

226 posts

Posted on 6/21/22 at 5:51 pm to Im4datigers

quote:
Unless I'm missing something

We're over AGI for deduction as well but max ROTH IRA anyway (TIRA recharacterized to ROTH).

Investments compounding for 30+ years w/o taxes due on withdrawal is a no brainer, regardless of current tax benefits or lack thereof

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Posted by Tomcat

1825 Tulane

Member since Nov 2004

498 posts

Posted on 6/22/22 at 7:53 am to Im4datigers

I have heard that you should always invest at least 7% into your 401k, because it will not change your net income. I know this rule of thumb will not always work, but could it serve a general guideline?

I max out my 401k, but the old man in me tells younger workers to invest at least that a,isn’t even it exceeds your employer’s contribution.

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