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suparna
New Poster
Cash: $ 0.45
Posts: 2
Joined: 12 Jan 2005
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| confused????? [401k or Roth IRA] |
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Hello everybody,
I have been investing in a 401k plan for 4 years now....but have not maxed out on my investment.I invest 4% of my yearly income because the company matches the same amount. Off late I have been reading on Roth IRA and was thinking of opening a Roth account.
My question is should I just go on to invest the money I wanted to invest in Roth in the already existing 401k or open a new Roth account
Please advise me on this. 
Thankyou 
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Tue Feb 15, 2005 11:05 pm |
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Andrew
Admin
Cash: $ 460.25
Posts: 1695
Joined: 02 Nov 2003
Location: Texas
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Are the matching funds only for the 401k?
I'd want to take advantage of that perk as much as possible!
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Wed Feb 16, 2005 3:24 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
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suparna, you're doing the right thing by contributing up to the match in your 401(k). Next, I'd max out the Roth, since it will provide tax-free income to you when you begin taking distributions. After you've maxed out the Roth, then you can go back to contributing to the 401(k).
Hope this helps -
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Feb 16, 2005 2:40 pm |
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suparna
New Poster
Cash: $ 0.45
Posts: 2
Joined: 12 Jan 2005
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Thankyou Andrew and BlankenshipFP for your replies...........I think I will open a Roth account...and if I am left with some money after maxing on the Roth,I'll invest it on 401k.
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Fri Feb 18, 2005 1:17 am |
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