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Max for firm match
Max IRA (5500)
Then contribute to HSA
After HSA, start adding more to traditional 401k
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.
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
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?
That’s why you split the two. Take the refund you get from taxes now and use that to contribute more to your Roth.
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.