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I started my 401k way late in life (about 3 years ago, I just turned 30) so it's small and piddly right now. I have a good chunk of money in my savings account, so I want to make a "Catch up" deposit into my retirement funds. Is it better to just make a deposit (I'm thinking of doing about $5k) into my 401k account, or open a separate IRA, either traditional or Roth? If I deposit into my 401k, how does that work? Would I deposit it directly from my savings account, or ratchet up my contribution to 100% for a couple paychecks and live out of my Savings Account while it's happening? EDIT: 401k.com says I can only contribute up to 50% pre-tax, so I guess an option would be to contribute 50% for a month or two. But is that the best option? syphon fucked around with this message at 22:14 on Jun 23, 2011 |
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Jun 23, 2011 22:08
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| # ¿ May 20, 2024 22:23 |
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So it sounds like my two options are... 1) up my contribution to 50% for a couple months 2) dump $5k into an IRA (that's the taxable limit, right?) then maybe another $5k next year. I guess i'm looking for some advice on which is a better strategy. I know the rough overview of the differences in the accounts, but I don't know enough to know which is better in my situation when it comes to tax implications. Lastly, do you guys know if there's any penalty for changing your 401k Contribution Amount multiple times a year?
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Jun 23, 2011 22:29
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Thanks, I think that answers my questions! I guess i just need to decide if I want to pay the taxes now or pay them later.
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Jun 23, 2011 22:40
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I didn't realize 401ks were limited to $16.5k annually, so I guess that makes the decision for me. I think my "catch up deposit" plans would have exceeded $16.5k this year
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Jun 23, 2011 22:48
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Does anyone have any advice or reading material on what ETF's I should invest my shiny new Roth IRA into? At this point, the only thing I can think of doing is googling "good ETF to invest with a roth ira", which probably wouldn't steer me too wrong, but also wouldn't give me the best of advice.
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Jun 28, 2011 19:11
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AreWeDrunkYet posted:Are you maxing out the available $5k for a Roth before putting more into your 401(k)?  I think I picked the worlds worst ETF's to invest in.
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Aug 4, 2011 06:11
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Happy New Year! Can you guys help me pick some ETFs for my Roth IRA? I already have a 401k invested in some diverse mutual funds (my coworker helped me pick these out), so I'm trying to be a bit more adventurous with the Roth IRA. I want something with very little maintenance and moderate risk. I'm looking to retire around 2040-2045, if that helps. Last year, I tried to research and invest on my own... and I think I failed miserably. My $5,000 quickly dropped to about $3,500, and is now relatively stable at $4,300. Here's what I chose: Do you guys have any advice on what I should do with this year's $5,000? Should I pump more into last year's choices, or pick something entirely different? If so, any pointers?
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Jan 2, 2012 23:40
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Yep, the 401k has a hefty allocation towards a target fund (2040 I think) so like I said, I'm willing to be a bit more experimental with the Roth and ETFs. I just want advice that says I'm going in the right or wrong direction with my choices.
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Jan 3, 2012 04:59
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Yond Cassius posted:Syphon, maybe buying into SPY would be a good addition? Considering your VXF holdings, it seems like a conspicuous absence to me. It's not particularly adventurous, but it is low-maintenance and pretty much defines "moderate risk". 
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Jan 3, 2012 19:56
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Vomik posted:Does the traditional -> Roth trick still work?
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Jan 5, 2012 00:56
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For reference, I'm 30, single, and don't own a home. I contribute 15% to my 401k (company matches 50% up to 6% of income, IIRC). I thought that number was obscenely high until I chatted around and found a few other people doing similar contributions. When I buy a house or have a kid I'll bring it down to 6-9%. But for now? I'd just be wasting that extra money on soda pop and baseball cards or some poo poo like that.
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Jun 28, 2012 06:10
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I'm about to start a new job, which means it's time to roll my 401k over from my (soon to be) previous employer. Can anyone shed some light on this process? 1. Could I roll it over to a different company if I wanted to? (e.g. Fidelity to Vanguard) 2. Does it roll over to another 401k, or an IRA, or do I have to choose? What are the advantages of each? (assuming I do get a choice) 3. Should I note down my current investments, so that I could go with something similar with the new account? Or SHOULD I go with something similar?
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Oct 29, 2012 05:13
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Both my old and new employers use Fidelity. Should I wrap it into a new 401k account, or IRA? What are the differences really? I have a Roth IRA as well, but is a traditional IRA taxed in the same manner as a 401k? (as opposed to a Roth IRA).
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Oct 29, 2012 19:03
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I think that about answers my question! I'll probably roll-over my old 401k into the new company-provided 401k and leave my existing Roth IRA separate. Thanks for all the pointers guys!
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Oct 29, 2012 20:16
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How does one find the expense ratio charged per fund? (for Fidelity specifically, but also in general)
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Oct 29, 2012 23:56
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Is it common practice to dump 100% of my 401k into a Target Retirement fund? Would that be stupid to do, as opposed to trying to keep a diversified portfolio a la that site that was just linked?
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Nov 24, 2012 21:03
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| # ¿ May 20, 2024 22:23 |
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Do different companies use different ways of showing fees? For example, looking at both Fidelity and Vanguard's 2045 retirement funds, Fidelity shows "Expense Ratio: 0.76%" while Vanguard shows "Acquired fund fees and expenses: 0.19%". Are they measured in the same way (and thus, Vanguard being much cheaper) or are the costs measured differently? Also, my 401k is through Fidelity, is it typical to be able to invest in a Vanguard fund like that, or will the expenses/fees be more?
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Nov 25, 2012 01:43
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