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Investing/Strategies / Retirement Investing
|Subject: Re: Beginning Retirement Investing||Date: 2/20/2013 12:21 PM|
|Author: MurrayS||Number: 71440 of 74461|
I'm depending on memory but it's because after you do up to the match on the 401K, it's usually a good idea to then go for the maximum in a Roth if you qualify.
A couple points...
I'm a firm believer that I will pay less than 25% effective tax rates in retirement so I personally would not take money out of a tax deferred account to put into a Roth if I had to pay 25% or more in taxes. If your marginal tax rate is 15% or less, I'd agree with putting money in a Roth prior to non matched 401k.
That said, I wouldn't stop contributing to a 401k but rather put additional investments in a Roth. That's why the advice was confusing to me.
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