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

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Which is better to use when saving for retirement - The Roth 401(k) or the Roth IRA?
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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

Опубликовано:

4 окт 2024

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Комментарии : 22

@cortez9978 2 месяца назад

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 2 месяца назад

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

@Linette-g-y 2 месяца назад

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 2 месяца назад

@@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 2 месяца назад

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 2 месяца назад

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.

@christine-jx4fh Месяц назад

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.

@HookemFishing 13 дней назад

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.

@slimdawgwoof 4 месяца назад

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 13 дней назад

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

@FaceInstitute 4 месяца назад

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.

@MrKewlplayer 11 дней назад

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.

@tman52100 8 дней назад

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

@AprilVCatlett 4 месяца назад

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.

@michaelsd284 4 месяца назад

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 3 месяца назад

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

@robertomiller.7574 Месяц назад

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?

@Berniece-kf6eg 3 месяца назад

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

@dextersings3944 2 месяца назад

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

@mrbrown30238 Месяц назад

Absolutely

@HookemFishing 13 дней назад

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

@charlesbyrneShowComments4all 3 месяца назад

Both are great. If your 401k Roth has higher admin fees or the funds have higher expense fees with limited options and you have the option to max out the Roth IRA then do that then invest the remaining into the Roth 401k. My wife has Roth options at her workplace, but I don't. My fees are lower in my private Roth versus the workplace option.