What is the strategy for 401k investing? Match the firm match using pre tax first then everything maxed out second using post tax?

like
Posting as :
works at
You are currently posting as works at

Max for firm match
Max IRA (5500)
Then contribute to HSA
After HSA, start adding more to traditional 401k

like

You should never put LESS than the company match in...if you can, you should put more in since it lessens the tax you pay at the end of the year. That’s what I keep telling you.
If you make $100k in 2019, and you max out your 401 of $19k, you only pay taxes on $81k. Since they took out the taxes based on $100k, you’ll get a refund at the end of the year, or you can lower the amount taken per paycheck.
On top of that, your money works for you in compounding fashion.

Other than this, Roth, especially large, backdoor Roth contributions are stellar. In 2018, you can contribute a total of $56k to your retirement accounts.

likehelpful

Nope.
Max 401k pre tax (and take the deduction in AGI)
Roth (if you qualify. If you do not, contribute to post-tax and then backdoor Roth)
HSA

like

Sc1 why would you max your firm match only before IRA? Unless your matched contribution is 18.5 then you’re leaving pre tax savings on the table by contributing to an IRA with post tax money right?

like

That’s why you split the two. Take the refund you get from taxes now and use that to contribute more to your Roth.

like

Possibly yes -
But I prefer to have some money in my Roth IRA as i also use it as a “rainy day” fund as there’s a lot less penalties involved with removing money.

It’s really preference, I don’t make enough to be able to dump 19k into 401k at the moment so I do ~10 to 401k, max our Roth, etc.
if you have the money to do 19k into 401k, it’s never bad to do so

Some people say only ever put as much as the match into a 401k w pretax money. What are you doing with what isn’t the match outside of a Roth IRA? Putting post tax up to the limit?

I guess my problem with that MD1 is that we are assuming taxes will be lower later in life, but that isn’t true. I might have a lower taxable income now, but if i take the tax now and put it to the max post tax maybe i will lose less than paying more tax later? I cant decide if that is better or worse than having less to invest now because I put post tax money in there.

Related Posts

I have been in long term care healthcare sales for a few years now and want to transition to medical device or pharmaceutical sales does anyone know anyone hiring or that could possibly refer?

like

For Amex blue cash everyday card, as long as the purchase is categorized under groceries, I should receive 3% reward?

Post Photo
like

In MBB / T2 market in SEA what would be the net take home ( in USD post tax w/o adjusting to cost of living) relatively to each other . My sense is that if we take Singapore of index of 100% of net income for the level than:
1) Indonesia 70%
2) Malaysia 80%
3) Thailand 75%
4) Philippines 65%

like

Does Bank of America do a Mega Back door 401K?

like

Looking for any Bay Area referrals for a non-technical role that requires an amazing people-person. Calm app?
Husband worked in an education nonprofit for 7 years - started as program staff, quickly promoted to program director, left because of toxic management, lured back as another team manager with better pay and benefits but toxic boss is no longer worth it. He is truly an exceptional manager and is having trouble finding a way into a new org that isn’t at the bottom rung or dismal pay…

new to investing. have done some research - reading blogs and a few books on investing. I still have the question of do individuals that take the index fund route… do you all purchase the same funds for different accounts? Example, would you invest in VTSAX across a brokerage and roth account, or would you take a different approach for each account?

like

Hi! I’ve been a voluntary benefits agent with a few different carriers for 5 1/2 years. I’m currently the AE for 75+ accounts. I am completely burnt out on prospecting for new groups and wish to transition into a career without sales quotas. Could be in insurance or another industry. My favorite part of my role now is educating/counseling people on benefit options. I’m wondering if there are others who’ve been in the same boat. Open to any suggestions!

like

Don’t mix Investment and Insurance.
Buy term insurance in your early age.
Invest mix mode equity and debt .
Ping me for invest and insurance help.
Also get discount price for insurance

like

Best way to redeem UR points? If answer is travel, how do you know you're getting a good deal?

like

If I’m above the Roth income limit, can I do back door Roth for my Roth IRA and mega back door Roth for my Roth 401k? And does back door Roth count against contribution limit for mega back door?

like

How much is the average salary for a healthcare advocate for an insurance company?

like

Happy Friday! Has anyone made the switch from HR Generalist to payroll/benefits specialist? Wondering if you missed being involved in hiring, onboarding, employee relations. These are the things that are super stressful for me right now (dept. of 1) but also what I somewhat enjoy. I’m newer to the benefits space but very interested in it.

like

Looking to transition out of Healthcare sales into SaaS and would like to get a position with Salesforce, Gartner or even move into the public sector. Just looking for some guidance and advice on anyone who has done this successfully and if you have any contacts that be helpful to learn from.

Temporarily transferring abroad for eventual L1 return - what do I do with my US credit cards? (CSR, Bonvoy) Wondering if the annual fee and FX is worth keeping them?

In BNP Paribas CIB what all benefits we hav as employee

I hit my FIRE number today at 50yo!!!! Had to tell somebody.

likeuplifting

Does anyone know of any part time positions in healthcare? Wanted to get into medical sales. I have a ton of time outside of work so I figured it could be a good opportunity to make some extra cha-ching

like

PwC'ers. How much am I looking at for healthcare for myself, my wife, and toddler?

I start in a week, haven't seen figures yet.

Larsen & Toubro Infotech How is the medical insurance premium deducted at Larsen & Toubro Infotech aka LTIMindtree?
In monthly installments or at once ?

What are the medical insurance benefits ? How much is the coverage and who are covered?

like

Which industry groups are y'all in? Are you happy with it? I'm hating life in healthcare atm.

like

More Posts

Hi all
I am in KPMG global services team and wanted to know that since most people get 3 rating only (8-15% hike).
So what can be done extra to get a rating of 2 or 1. I mean above the regular work

Appreciate the help. Need some advice regarding career

TIA

like

Best way to ship someone liquor as a gift?

Please help me with In-hand salary :

Post Photo
like

I just started a year long assignment and the city I am in has a Hilton, Marriott, Hyatt, and Sheraton. Which hotel chain should I rack up points with?

like

McKinsey 🐠, what holidays do y'all observe in the States?

like

Should your raise be equal to or more inflation?

like

Anyone working in capgemini engineering(altran) in mumbai?

like

Hello All!

I am a graduate of Suffolk University, and I recently received my masters in Business Analytics. I am currently pursuing a career as an IT Business Analyst at MSU Denver, which I have the 30min first round interview scheduled for Tuesday, November 29th.

If anyone is or was previously employed as an analyst at MSU Denver, would you mind providing some insight into the culture, the interview process, salary information, etc. I would truly appreciate any help as this is a role I want

like

What’s so compelling about the sales side that makes agency people move?

Canadian IB comp check. Hearing analysts have gone from 95k–>100k (and 115k for one bank) - is this true? What is the new base salary for Associates (specifically Associate 1)? Heard they were at 135k before. Any data points are helpful.

like

I have been waiting for a month for offer from pwc ac... everytime i call they first said mapping is pending ..now they are saying we are uploading in workday. Any one here can u plsase help me underatand how many days still before i get the actual offer

Is north beacon hill a good neighborhood? Is it a desirable neighborhood for young people?

like

Week 6 and my breast hurt so bad, it feels like a stabbing knife. Is this normal? Remedies?

What are the consequences for H1B Lca amendment rejection?

like

Will there be market correction or mid year hike in 2022 at Deloitte India ?

likehelpful

Hi fishes, what is the remuneration for hub incharge in flipkart, also how would you describe the daily life of a hub incharge, is it worth joining? How is WLB?TIA

Anyone a part of Soho House? Is it worth it, thinking of joining

like

How many days will it take to complete Background verification in Tiger Analytics?

Anybody know someone left PwC for Media clients? Pros/Cons?

like

Which industry (Healthcare vs. Financial Services) has the higher demand for privacy professionals (risk and compliance)?

like

Additional Posts in Consulting

What are typical backgrounds for people who go into product management at FAANG companies?

like

Who cares about saving the real world now that everyone is building the 'metaverse'?

like

Train or flight from newark to bos thursday ~5 pm?

Fellow runners - I’ve been running 3-4x per week at about a 20-25 mile/week for the past year or so.

My questions: (1) does it make sense to take a week off and let myself rest or do other workouts (i.e. cycling) and (2) I’ve been running with the same shoes since August last year - make sense to get new ones?

like

Salary for a first year Advisory Senior Consultant at EY?

like

Email is the worst form of work communication, fact! If you need me to respond anytime soon, find me, ping, call, text. Message by carrier pigeon would probably be better otherwise it's a month delay!

like

EY: Anyone work with/for Advanced Analytics in PI

Anyone get the “pls fix” emails at the worst time?

likefunny

I’m working at a Big 4 as a Business Analyst on a software implementation project and am interested in doing something similar at a smaller consulting firm, like Slalom. Looking for recommendations on firms to look into. Any suggestions?

like

EY-Parthenon , EY fishes is TAS (Transaction advisory part of EY or EY-P? Can you shed some light on the compensation range for Director role? I have 14 years experience and currently at Director level. Thank you.EY EY-Parthenon

like

Is there anyone from McKinsey public sector available to tell me a bit about the work-life balance etc?

like

Are all the Olive layoffs just due to preparing for the recession? So sorry to everyone who was laid off

like

So if I split a referral bonus 50/50 and Im the one who got it. Do i just split 50% of the net i received after deductions?

like

Anyone from DT please tell me your thoughts on the company. I'm considering a move.

Does anyone at Deloitte GPS like their job? Please share some positives before I hit accept...

like

Does the CSR give 3x on gas?

like
like

At what level do you stop maintaining a resume? Currently 10 yoe, but I stopped at 7 because it seemed like any job I actually want is going to be word of mouth through my network. Is that normal, or do people actually keep them up to date?

like

Can hese profiles be unmasked by our employers? I have noticed a particular pattern. I am trying to validate it.

likefunny

Anyone in EY construction and real estate practice? I saw a job listing and was curious to know more.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal