Thu, 19 May 2022
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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