Ep. 162 - Roth IRA vs Roth 401k - Which One is The Best? (Ask the CFP®)

Decisions, decisions.  Sometimes we are faced with difficult decisions, they may both be good choices, but we have to pick one.

 

Today we are talking about the Roth IRA as I answer a reader question.

 

This question come from Carlos: “I just started a new job after a lengthy stretch of being unemployed. My last job had a 401k but I was excited when I found out my new job offers a Roth 401k. I already have a Roth IRA - thanks to you!  - but I’m not sure which one to do. I wish I could do both but financialy I can’t afford it. If I had to pick one which one would it be - Roth IRA or Roth 401k?”

 

If you have access to a 401k, your employer has the ability to add the Roth 401k provision.  If they do n to have the Roth provision yet, you could talk to HR to see if they are willing to add the provision.

 

00:00 Intro

04:35 Similarities of Roth IRA and Roth 401k

07:43 Early withdrawal restrictions

09:12 Key differences of Roth IRA vs Roth 401k

12:24 Loan provisions

15:21 You are in charge of your investments

19:02 Is that your final answer?

Resources:

The Ultimate Roth IRA Conversion Guide – Everything You Need to Know

401k Contribution Limits for 2022

The Traditional IRA vs. the 401(k) Plan – Which Plan Wins?

Roth IRA Rules and Contribution Limits for 2022

https://wealthhackerlabs.com/ask/

 

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