No. of Recommendations: 3
rkmacdonald says:
"I agree. To put this another way, use the following steps:

1. First, contribute to the 401(k) to get the maximum match from your employer.

2. Next, open an IRA with a low cost mutual fund company (or brokerage) and fund it to the max.

3. Next, contribute the remaining allowed (unmatched) to the 401(k)."

RK, Are you sure this is the best way to do it for all people?
What if a non-deductible traditional IRA is all one qualifies for? Wouldn't the 401-k max come first in that situation? What if the tax reduction now (401-k) is more valuable to a person than tax free earnings later (Roth)?
Giving one size fits all answers can definately be a mistake.

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