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My husband has a 401K with TIAA CREF and his employers contribute 10% of his salary to this. So far, he hasn't made his own contribution since we've been saving up for a house but wonders once he is ready: is it best to contribute to the 401K (add to the amount his work contributes) or to contribute to his own Roth IRA and benefit from both accounts?

Thanks in advance!

Meowmixx
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My husband has a 401K with TIAA CREF and his employers contribute 10% of his salary to this.

Where does he work? I want some of this!

;-)

cliff
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Most would participate in the 401K sufficient to get employers match and then do the Roth. If his employer does not require his contribution for them to contribute, then do the Roth first.

If your budget will allow it, do the Roth first to the max, then the 401K to the pretax limit, and finally the 401K to the after tax limit.

In the long term you would like to do both to the max, especially if you want to retire early.

Best of luck to you.
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Actually I should clarify that it is not a 401K after all- it's a tax sheltered annuity....

Thanks for the advice!
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