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Discussion Starter #1
Good evening forum! So I have a question that maybe some of you can also help with. I know Dave says to match your employer's 401K match and then invest in an IRA. So my problem with this in my personal situation is that our company automatically puts 2.5% into your 401K whether you put anything in or not up to the first 5 years of employment, 5% after 5 years and up to 10 years, and then finally 10% after 10 years of service until retirement. They also automatically put the 2.5% into a pension fund as well.

So the question is, since I do not need to put money into my 401K to match, should I just let the employer invest in the 401K as mentioned above and me invest into IRA's myself with my 15%?
 

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Discussion Starter #3
Is your 15% more than the amount you can add to an IRA for the tax year?
So if I just put in 15% of my base salary then no, 15% would leave me putting in roughly 12K per year. Now if we went off overtime, which is variable, then I could very likely get to 18K.
 

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I know you are limited in the amount you can put in an IRA. This is what we do. We do have the company match so we put 9% in the 401K. Because we have that amount going in to the 401K, DH cannot add to an IRA. He has a Roth that we max out at 6500 yr. ( there is an extra 1000 we can add since we are over 50) I do not work outside the home, so I cannot do a Roth. I have an IRA that I max every year at 6500. You will need to look at the numbers you have to see what you can do. but realize that you do have certain limits that you can add to IRA's.
I am not a major money guru, but have learned what works for us.
 

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I was told no a few years ago when I tried to get one open for me. Therefore we went with him having a roth and me a regular IRA.
 
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