Roth 401k vs. Roth IRA - Making the Best Choice for Your Retirement

[@DyonvreduogG]

I am 53 and retired at 50. One thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collaborative efforts in the fund my estate planner has me invested in. I do not work.

[@LucianWeitwqsG]

I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.

[@YareliClarketwG]

@@LucianWeitwqsG My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.

[@YareliClarketwG]

@KeonKramertgF I've stuck with *MARGARET MOLLI ALVEY* for about 9 years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@Jordan-m6t]

I'm convinced that investing 50k-100k in the right company before it goes big is more important than saving for retirement. However, picking the right company is so hard. I have around 200k in a HYSA and want to invest it. What are the best opportunities now?

[@davidcartwright01]

I believe investors should start with S&P 500/ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@RussellBouchard-d7g]

The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.

[@lucianaserejo-p1z]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@RussellBouchard-d7g]

I have stuck with the popularly ‘’Celia Kathleen Martel” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@lucianaserejo-p1z]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@cortez9978]

I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement in 3 years.

[@Ballesteros-d]

consider financial advisory so you don’t keep switching it up... those sound like great picks anyways, not bad for 350k

[@Linette-g-y]

Agreed, I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has 5X in barely 5 years, summing up nearly $1m as of today.

[@AstridJohansen-z]

@@Linette-g-y this is huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing

[@Linette-g-y]

I take guidance from a Montana-based advisor ''Katherine Nance Dietz'' To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@M.Herlihy]

thanks for putting this out, curiously inputted Katherine Nance Dietz on the web, spotted her consulting page and was able to schedule a call session, she actually shows a great deal of expertise.

[@slimdawgwoof]

I think the real question is which one should you prioritize, as you might be able to do both (especially with backdoor roth option). Generally I think it's roth 401k for company match and erisa protection, and rule of 55.

[@HookemFishing]

Right. Matching is free money. Must have that first.

[@chipsammich2078]

I max both

[@jmooty5123]

Can I contribute to both a Roth IRA and a Roth 401k at the same time?? Maxing out both ($30k (401k) & $7k (IRA) )

[@MrKewlplayer]

Question: I have a Roth 401k at work. I also have 2 separate Roths and 1 traditional ira in a outside account at one of the major brokerages. I'm over 50. I know you can contribute 8k per year. The part that is confusing me is, doesn't the work Roth 401k fall under the 8k limit with all my OUTSIDE accounts combined? OR DOES THAT FALL UNDER SEPARATE CATEGORIES. I WAS INFORMED ALL YOUR ROTHS AND TRADITIONAL IRAS CANNOT EXCEED 8K PER YEAR. I called a tax professional they state that's true. The Irs charges a 6% penalty if you over contribute.

[@HookemFishing]

I've done extensive study on this. Yes go with the Roth 401k first. No income restriction and can't leave free company matching off the table. The Roth IRA has the advantage of contribution withdrawal at anytime. The Roth IRA has the backdoor and mega backdoor A 401(k) is an ERISA-qualified plan, so it is likely protected if you get sued. This includes rollover dollars from other 401k but has not roll into new 401k.

[@robertomiller.7574]

I have a 401k traditional IRA and a 401k ROTH IRA I'm 60 years old. Can I open another IRA and ROTH IRA with a financial institution and have them both so I can roll over from my 401k traditional into my other IRA?

[@christine-jx4fh]

I wouild say Roth 401K in your working years then roll it over to a Roth IRA in retirement. My 401K charges 55 basis points every year and my Roth IRA charges 0 basis points. My 401K doesn't allow qualified withdraws until after 65 and has fees for withdraws when do you. The investment choices are also terrible. I can't wait to roll over this account.

[@FaceInstitute]

You can always contribute to a Roth IRA, either directly or back-door (unless you have no W-2 EIC). The only caveat would be if you have a large IRA balance, there may be tax consequences.

[@michaelsd284]

In my scenario I've hit the income limit and not eligible to contribute to my Roth IRAs so I've been using the traditional 401k route. Luckily I found you video so it sounds like I should be able to us my company's 401k Roth option. You mentioned the contribution limit is $23k which sounds just like the limit on the traditional 401k. Are these limits mutually exclusive?

[@alrocky]

Your Roth 401(k) contribution + your traditional 401(k) contribution may not exceed $23,000 for 2024.

[@tman52100]

59 1/2?? I thought we could walk away at 55 if we've worked at the same company for x amount of years?

[@henrynguyen4132]

Am I missing something? Here is my assumption, at current working with high income and high income tax at 30%; however, at retirement, the income is lower and income tax is at 20%. With those assumptions, if I set aside $1,000 for retirement and invest with 6% return. At 20 year later, for regular 401K and $1,000 investment, I should get $3,207. At withdraw and pay 20% income tax, I would take home $2,566. If I choose Roth 401K, I have to pay 30% tax of $1,000. Therefore, I only have $700 for retirement investment. At 20 year later and 6% return, when I withdraw (with no income tax), I would get $2,245. Based on this math, it looks like Traditional 401K is better than Roth 401K ($2,566 versus $2,245). If people think that their overall income at retirement is lower and their income is lower compared to while they are working, maybe traditional 401K get a better return than Roth 401K. Am I missing something in my calculations?

[@dextersings3944]

Can you have both Roth 401k and Roth IRA at the same time?

[@mrbrown30238]

Absolutely

[@HookemFishing]

Yes... but go Roth 401k first if your company matching. The matching goes to IRA portion of 401k.

[@AprilVCatlett]

I need the entire 401k deduction to keep me out of the next higher tax bracket. In my case, the ROTH 401k doesn't work for me.

[@Berniece-kf6eg]

Thank you for expanding my understanding of personal finance and investment. I recently subscribed to your channel. I'd like to express my appreciation to everyone working diligently to earn a living and accumulate wealth during this recession. My husband and I are both retired and debt-free, and we're being prudent and frugal with our finances. Despite the recession, we continue to generate passive income through our savings and investments in the financial market. This investment-focused lifestyle has allowed us to receive a consistent monthly income through passive means, for which we are truly grateful