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GAFF
Alabama Fan
Georgia
Member since Aug 2010
914 posts

Work 401K or Personal Roth?
My work matches up to 6% on contributions. I contribute 12%. What are the pro and cons of me only contributing the 6% and putting the other 6% into a personal Roth account?


Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
46285 posts

re: Work 401K or Personal Roth?
Pros
-more control of your investments
-Principal in Roth easily assessable in dire emergencies in preretirement ages at no penalty, tax, or forms to justify the expense.
-highly likely these years are the lowest tax rate you’ll be under, so you get an innate mathematical boost to the value of investments
-tax diversification
-more flexibility on withdrawals (Roth’s are not subject to required minimum distributions like 401k)

Cons:
A more dynamic portfolio to manage.



Seriously, it’s common general advice that you get money in 401k up to match, then maximize personal Roth, then maximize 401k


GAFF
Alabama Fan
Georgia
Member since Aug 2010
914 posts

re: Work 401K or Personal Roth?
Thanks. First time in my life where I have a job that affords me these opportunities. Still trying to figure it all out.


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