Comments on: Should I Put Money in a 401(k) or IRA First? https://www.mymoneydesign.com/should-i-put-money-in-a-401k-or-ira-first/ Designing Financial Freedom Sun, 22 Mar 2020 20:40:00 +0000 hourly 1 https://wordpress.org/?v=5.5.12 By: Dave https://www.mymoneydesign.com/should-i-put-money-in-a-401k-or-ira-first/#comment-105883 Mon, 31 Dec 2018 03:23:07 +0000 https://www.mymoneydesign.com/?p=10337#comment-105883 There could potentially be a difference between an IRA and a 401k in regards to asset protection. That might be something to keep in mind.

]]> By: ARB https://www.mymoneydesign.com/should-i-put-money-in-a-401k-or-ira-first/#comment-103082 Thu, 15 Mar 2018 20:03:41 +0000 https://www.mymoneydesign.com/?p=10337#comment-103082 I don’t think you really get a choice. The money you’ve allocated to go into your 401(k) will go right in. You’ll never see that money in your wallet and never get a chance to decide.

Personally, I don’t think there’s any reason to touch an IRA unless you’ve already maxed out your 401(k), you have excess savings and you’d rather lower your taxable income, or you recently received a small cash windfall and you’d rather put it away long term rather than paying taxes on it.

I myself don’t have an IRA, but I contribute 25% of my paycheck to my 401(k). If me and my business partner decide to dissolve a business that we own (that we haven’t done anything with in a long time), then I’ll be getting roughly $6,000 that most of will go into an IRA.

Ultimately, it really doesn’t matter where you save that long term retirement money as long as you save as much as you can.

Sincerely,
ARB–Angry Retail Banker

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