Raybyrnes. Contribute up to the matching contribution in 401k.
Next contribute to Fully funding ROTH IRA.
If ROTH IRA is Fully Funded consider going back to fully funding 401K.
Do this as opposed to first maxing out the 401K and then trying to fund ROTH IRA.
Yes that would be my general advice. Of course, it’s best if you can max out both the 401K and Roth. We did this for about 5 years and are now glad we did.
Note, however, there could be extenuating circumstances on an individual basis …
With the ROTH you do not get an immediate tax break. It’s possible that some extra dollars put into your 401K instead would help you drop below some key thresholds for phase out of deductions, or eligibility for certain credits or deductions, or may influence the amount of AMT. However, for most folks making under the Roth limits these probably are not significant.
