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Can you explain the difference EY 1? To max both it would mean a considerable amount from my paycheck as well.can it be withdrawn anytime
What is 501k? Just so you know I am not a US citizen so I don't know if I qualify
Yeah never heard of 501k either...
OP, I suggest you sit down and create a personal finance excel sheet that breaks down all of your pre tax deductions, taxes, post tax stuff you wanna take out of your check. Make t so you can manipulate variables such as 401k percentages, stuff like that. Makes it easy to see the impact on your paycheck when you map it all out.
Max both. After ~110k salary you can't contribute to your Roth. And you want to take advantage of the extra money given to you for your 401k
Do both if you can. Mad out the match for 401k since it's free money and put away as much as you can into Roth. The limit is 5500/year for individual so that's just under 500/month. If you can't put away that much, put away at least something
5500 for Roth or 401k? I thought 401k was six percent of your paycheck
5500 for roth
Everyone is assuming they mean Roth IRA and not Roth 401k. Very different contribution limits and regulations.
501K up to company match -> IRA to max -> 401K to max. That should be you're priority. Roth or not is a different question. If you are less now then you will be when you're withdrawing money from these accounts use Roth, otherwise use traditional. Once you put money in you can withdraw, but there will usually be a penalty.
They meant 401k