The 2023 contribution limits for 401k/403b/457 plans and Traditional/Roth IRA will go up substantially due to high inflation.
Most people are better off contributing to a traditional 401k, not a Roth 401k. Here’s why.
Next time you hear “people used to have a pension,” think “people used to save 15-20% of their pay.” Nothing stops you from doing so today, unless you don’t want to.
401k and IRA contribution limits are adjusted for both inflation and deflation. If we have bad enough deflation, the limits can go lower.
While everyone says get the 401k match, lower income employees end up losing out in a system against them.
A 401(a) plan allows additional contributions on top of 401(k), 403(b), and 457 plans.
Charles Schwab and Fidelity made it really fast and easy to rollover a 401k to an IRA. The whole process completed in only two days.
If your employer has an outdated 401k match policy you will have to do extra work. Employers current with the best practice give a true-up match every payroll.
If you receive EITC or the ACA subsidy, you should contribute to the Traditional 401k, not to the Roth 401k.
Roth 401k makes it easy for people to fool themselves into contributing more.
My smartest financial decision years ago created foundation for my financial security today. What was yours?
Investing in actively managed funds can get you to the same place as investing in index funds. Investing to begin with and a sound asset allocation are more important.