Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hi Turquoise - If you're making $80/year you're in a fairly low tax rate. I'm betting your effective federal tax rate is somewhere around 18%? If that's the case, you may be better off first contributing to your 401(k) with Roth contributions, get the match, then contribute to a Roth IRA. The reason I'm suggesting the Roth IRA after your Roth 401(k) contributions because it's possible that your employer plan fees are high compared to a Roth IRA funded with Vanguard funds (I don't get paid by Vanguard in any way). I know your question is about your 401(k) but there's a good article about your same issue here: http://457planinfo.com/attack-of-the-457-plan-tax-zombies-pa... Even though it mentions 457 plans, it's the closest I could find relating to your issue. I hope this helps!
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.