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(former)FormerSanDiegan
ParticipantRaybyrnes.
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.ParticipantRaybyrnes.
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.ParticipantRaybyrnes.
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.ParticipantRaybyrnes.
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.Participantwe’re closer to a bottom in prices than we are to the top
In nominal price terms I might actually agree. But that does not mean it’s time to safely buy.I think we are about half-way there in nominal price drops. But we are probably only about 1/3 the way there in time (inflation).
While it clearly is a better time to buy now than it was in 2005, I don’t think we are on a new lower plateau.Participantwe’re closer to a bottom in prices than we are to the top
In nominal price terms I might actually agree. But that does not mean it’s time to safely buy.I think we are about half-way there in nominal price drops. But we are probably only about 1/3 the way there in time (inflation).
While it clearly is a better time to buy now than it was in 2005, I don’t think we are on a new lower plateau.Participantwe’re closer to a bottom in prices than we are to the top
In nominal price terms I might actually agree. But that does not mean it’s time to safely buy.I think we are about half-way there in nominal price drops. But we are probably only about 1/3 the way there in time (inflation).
While it clearly is a better time to buy now than it was in 2005, I don’t think we are on a new lower plateau.Participantwe’re closer to a bottom in prices than we are to the top
In nominal price terms I might actually agree. But that does not mean it’s time to safely buy.I think we are about half-way there in nominal price drops. But we are probably only about 1/3 the way there in time (inflation).
While it clearly is a better time to buy now than it was in 2005, I don’t think we are on a new lower plateau.Participantwe’re closer to a bottom in prices than we are to the top
In nominal price terms I might actually agree. But that does not mean it’s time to safely buy.I think we are about half-way there in nominal price drops. But we are probably only about 1/3 the way there in time (inflation).
While it clearly is a better time to buy now than it was in 2005, I don’t think we are on a new lower plateau.ParticipantYou can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.
Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.
For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.
ParticipantYou can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.
Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.
For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.
ParticipantYou can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.
Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.
For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.
ParticipantYou can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.
Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.
For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.
ParticipantYou can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.
Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.
For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.
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