Company 401K

[SuRgEoN]

Originally posted by: DaVortex

Originally posted by: SuRgEoN
Any time you can start an investment, you should. I've been investing since I was 13yrs old. Im 24yrs old now and very well off. I did however just start my 401k this past year. It's defintely worth it when you work for a company that can match it.

SuRgEoN,

I was just curious as to what kind of investing you did at the age of 13?

PM sent

 

[redly]

Roth IRA or regular IRA...
cause when you leave the job, you won't have to fiddle with where to put the money (pain in the a$$ if you're not big into investing)

 

[ttown]

Originally posted by: dsfunk
I only max my roth out right now, but if I wanted to could I max my roth and then have a regular ira as well?

No. Your total contributions to all IRAs combined cannot exceed the max.
Unless you're disqualified because of your sweet income, I'd max out the Roth. Odds are, the Roth will provide the best benefit.

If your "normal" and not too old, the max for tax-year 2004 is $3000.
($3500 if you're "old" -- 50(something))
For the tax year 2005, the max raises to $4000 (or $4500 if you're "old")

You can still contribute to a 2004 IRA/Roth-IRA till tax-day.

General strategy would be to put as much into a 401k as will be matched.
Then, max out the IRA/Roth (where you have control of your investment selections).
Then, max out the 401k (where you are limited to a narrow set of choices).

Depending on your time-line, current tax situation and expected tax situation when you retire it can sometimes be worthwhile to go with a traditional IRA over a Roth. Generally, the shorter your time-line, the less emphasis on a Roth.