Join Early Retirement Today
Thread Tools Search this Thread Display Modes
regular Roth vs 401k Roth
Old 05-12-2013, 08:20 PM   #1
Dryer sheet wannabe
Join Date: May 2013
Posts: 21
regular Roth vs 401k Roth

age 42, married
2 kids in grade school
I make 68k
my wife make 10k
Fed tax bracket is very low, I think it was 5%
I'll work for another 20 years.

I am putting 5% + 5% match into a 401k Roth and since we just paid off the house, we'll put that payment ($750) into investments.

I was thinking a regular Roth would make more sense since I have more control over the money.

The flipside is once it's in a 401k, it's hard to get out, which is a good thing.

I can buy most ETF's in my 401k. But I can buy anything in the Roth.

Any suggestions?

halv45 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-12-2013, 08:39 PM   #2
Thinks s/he gets paid by the post
RunningBum's Avatar
Join Date: Jun 2007
Posts: 3,723
Probably depends on what kind of fees you are charged in your 401K Roth. After getting a full match I would probably just do a regular Roth to have full choices and probably lower fund expenses unless you have a good plan. I'm not all that familiar with a 401K Roth though, so I could be missing something.

Not that it really matters in this discussion, but there is no 5% tax bracket. Your effective rate may have been 5%, but you are most likely in the 15% bracket. This would matter more if this was a discussion about a regular 401K vs Roth 401K. The Roth 401K almost certainly was the right call, btw. If you edge into the 25% bracket, you might want to revisit that.

RunningBum is offline   Reply With Quote
Old 05-14-2013, 09:24 AM   #3
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 3,805
In terms of Roth IRA contributions, you'll be limited to $5,500 or $6,500 depending on your age. Your 401k lets you contribute much more, though you may be able to contribute to both.

If you want to do a rollover, I think all the usual 401k versus IRA arguments still apply.
Animorph is online now   Reply With Quote
Old 05-14-2013, 09:28 AM   #4
Thinks s/he gets paid by the post
heeyy_joe's Avatar
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,402
Always invest enough in 401K to qualify for the match. A separate Roth for part of your money is a good idea too as it gives you lots of withdrawal choices later.
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
heeyy_joe is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 04:04 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.