{ "media_type": "text", "post_content": "If company only matches 6% should I only put 6% of income into 401k? Does it make sense to put more to lower tax bracket?", "post_id": "6140bbd438797500272a9959", "reply_count": 15, "vote_count": 1, "bowl_id": "5b3f7377ab53db00136f7b4c", "bowl_name": "FIRE Financial Independence Retire Early" }

If company only matches 6% should I only put 6% of income into 401k? Does it make sense to put more to lower tax bracket?

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Advice is (typically/generally/take-with-grain-of-salt) to match 401k %, then max out your Roth IRA, then rest to 401k.

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^this is what I would say also. I don’t make enough to max both, so I go to employer match, then max my Roth, then contribute to 401k

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Max if you can but at the minimum you should match to employee match. You also want liquidity and flexibility. People preach to max retirement accounts but it’s not the answer to all situations. Some people max it all out and then are cash poor. Great, you’re going to be wealthy when you’re 59.5 years old but live poor af esp when you’re early in your career. The goal should be to eventually max it all out because at higher income levels, it’s a no-brainer. But it’ll take you so much longer to buy a house if you’re maxing everything out when you only make $100k salary

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Follow me @millennialmoneyveteran for more realistic and logical takes

OP I wasn't able to max all 401k/IRA/HSA until i made >120k (single income family). From day 1 I made sure to get company match on 401k. By the time I made around your salary I was getting 401k match and maxing Roth IRA. There are plenty of reasons to not maximize retirement contributions, for example if you are working towards a bigger goal like a house down payment, wedding, car, paying down debt, etc. I don't think that includes distant goals (including FIRE) as there are plenty of good ways to access part of retirement savings early.

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This! I won’t be able to max until we buy a house and our student debt is paid off. Mine is almost done but my wife has a lot of student debt. Probably 3-5 years for us.

Try to max out if you can and Roth 401k it.

Always Max.

At your income, contribute up to max then put whatever else u can in Roth. You can then withdraw contributions at any time

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