studbucket
Recycles dryer sheets
In my other thread here, my 401k investments came up. Right now, I am investing 6% of my income and getting a 3% employer match, and for the first 21 months on my job, I put 3% into the Roth and 3% into my 401k, having 1.5% of the matches go to each (except that the Roth stuff is probably taxed to be less).
Just 1 month ago, I learned about the ability for me to roll my 401k over to an IRA, and then use 72t/SEPP to access that money early and penalty-free. Because of that, I thought it would be best to just go all-in on the 401k and stop investing in my Roth.
Then I learned that whatever I contributed to my Roth could be withdrawn early with no penalty as well. That means less money than my 401k will be available, but it will also be tax-free.
Learning this now has me confounded.
So, I plan to retire at 45, and am aiming to hit $2 million. (So, by the 4% rule, I'd get $80k/year). I am currently 25.
Based on this information, what do you think is the best thing for me to do for my retirement?
Just 1 month ago, I learned about the ability for me to roll my 401k over to an IRA, and then use 72t/SEPP to access that money early and penalty-free. Because of that, I thought it would be best to just go all-in on the 401k and stop investing in my Roth.
Then I learned that whatever I contributed to my Roth could be withdrawn early with no penalty as well. That means less money than my 401k will be available, but it will also be tax-free.
Learning this now has me confounded.
So, I plan to retire at 45, and am aiming to hit $2 million. (So, by the 4% rule, I'd get $80k/year). I am currently 25.
Based on this information, what do you think is the best thing for me to do for my retirement?