Author Topic: Can your 401(k) account be too big?  (Read 1356 times)


MDM

  • Walrus Stache
  • *******
  • Posts: 7192
Re: Can your 401(k) account be too big?
« Reply #1 on: February 25, 2016, 08:38:01 PM »
Not a bad article. 

It highlights the legitimate issue of folks paying a 15% marginal rate while working but "having" (not the worst problem...) to pay 25% marginal on withdrawal. 

Also "... take advantage of years when their incomes are lower, like after they retire but before they reach age 70 1/2, to convert some tax-deferred retirement savings into a Roth account."  Someone has been peeking at http://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/. ;)

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 27474
  • Age: -999
  • Location: Traveling the World
Re: Can your 401(k) account be too big?
« Reply #2 on: February 27, 2016, 02:54:18 AM »
No, not really.

But let's put out an article that gives a few weak reasons why, so people latch onto those and have yet another excuse not to save!  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 3971
  • Age: 33
  • Location: Seattle, WA
Re: Can your 401(k) account be too big?
« Reply #3 on: February 27, 2016, 09:56:01 AM »
Well, at some point you have enough in your 401(k) that you can live a happy life with just the money in there. At that point, adding another cent to it means you're working when you don't have to. In that sense, yes you can have too much in your 401(k).
I made a blog! https://seattlecyclone.com/

The Roth IRA was named after William Roth, who represented Delaware in the US senate from 1971-2001. "Roth" is a name, not an acronym. There's no need to capitalize the final three letters.