Optimal Order of Saving for Retirement Accounts… What to Invest in First?

[@MatSorensen]

Ask Mat: matsorensen.com/ask-mat/

[@tolosay]

Matt - the max should be $84,300. The $3,000 difference comes from the total Roth $ which is $45K $(38+7) and not $42K as presented in the video. Great video and thank you!

[@sIothbear]

I don't think HSA contribution limits are based on marital status. You need to actually have "family coverage" to qualify for the higher $8300 max. I'm married, but my max is the lower $4150 because my high-deductible health plan is "individual" - my wife is insured separetly by her employer and not HSA eligible. Pretty important distinction.

[@nazeercurry5248]

Great information. I'm going to subscribe!!!!

[@MatSorensen]

Awesome, thank you!

[@vanyennguyen9124]

Mat, if my company doesn’t match at all. Should I continue to contribute to the traditional 401k? I’m 42 and make 110k a year. Thank you.

[@dzel35]

Why not use the mega back door Roth before maxing out the 401k contribution? Is it just to defer taxes?

[@bfdklfs]

I’m wondering the same thing

[@DanielStallworth]

You can do roth for the 23K if you don't need the tax deferral, and I believe you are required to do the 23K before mega backdoor Roth 401k

[@ewliang]

​@@DanielStallworththis detail I am trying to figure out since I want to do the megabackdoor move too.

[@MatSorensen]

Hey Check out this out: directedira.com/everything-you-need-to-know-about-the-backdoor-roth-ira-in-2024/

[@libationwise7912]

If your employer offers a ROTH 401k, would I treat it like a ROTH ira and combine your steps 1 &2?

[@MatSorensen]

You will still get your employer match while making contributions to a Roth 401k so you can complete step 1 Match and Out. The Roth IRA will be a different account where you can personally make contributions to complete Step 2

[@emiliocunich2365]

I've been reading a few books on tax cuts.and videos. And people say you. Ant convert more than 7k? Is that true? They say if you convert 100k just have enough to pay taxes. Which makes sense. But you are saying you can only convert up to 7k total?

[@manuvns]

don't miss 401k , Roth and 529 space for tax advantages

[@MC-xk1gz]

Hi Matt How would you order it when you have the option of a 403b (no match), 457b (no match) and a Roth IRA. Thanks!

[@kellycorvin296]

I have the same question. If you have access to a 401k (with match) and a 457b (no match), and want to retire early, what order would be best?

[@VelascoNunez]

I just opened a Roth. I know absolutely nothing about stocks and ira's. If l add money to the Roth and do nothing else will it grow or do I need to use it to invest?

[@evh6323]

You. USA invest it! The best way to start is choose funds that follow the S&P 500.

[@MatSorensen]

You will need to invest it.

[@bkfinancialplan]

False…most 401k have great low cost index options, and maxing out the 401k before other vehicles keeps the investor away from believing they can outperform the market over a long period of time. Not to mention you can know make employee deferrals into a Roth 401k…where the match is pre tax or Roth depends on the employer. Agreed on the above the line HSA, not to mention once a lifetime transfer from a pretax up to annual contribution limit (wait til 55). Good point on EE after tax.

[@javierrivera1695]

You go focus 100K+ you not said anything about the lowest income the 50k you mention in the start of the video and you forget to talk about

[@Squashballs1337]

what i always tell people is to do it in this 401k (preferably ROTH 401k) up to the match HSA if eligible ROTH IRA if eligible max out 401k Taxable Brokerage accounts Granted most of the individuals i speak with don't make enough to go back to the 401k after maxing out the HSA and IRA accounts. Never thought about the backdoor roth after maxing out the 401k.

[@pauly5502]

Why wouldn’t you do a Roth 401k at your company? We are normal people here

[@MatSorensen]

The 401k can be Roth or traditional. I’d definitely have the 401k contributions be Roth (aka, after tax). Even the employer match can now be Roth too if elected properly and if your plan allows (new law in 2023).