This plus no match, it's really sad. That's why I have not been so enthusiastic with contributing, Is this still worth it or should I open up an IRA with Vanguard instead?
Not even a match?! Jeez, what a screw-job!
No, you should absolutely max out your IRA before putting even a penny in the 401k.
The question of whether you should contribute to your 401k at all (after maxing your IRA) or just move on to taxable requires additional information to answer. (Usually it's a no-brainer -- use the tax-advantaged space! -- but yours is just so damn bad I don't know.)
- What's your gross income (so we can calculate your tax bracket)?
- Does the 401k plan in question offer something called "in-service distributions?" If it does, it would be the only saving grace...
- If not, how long do you plan to work at this employer?
We max my husband's IRA every year and I put 10% of my gross income into my 401K, our accountant advised to put away at least 10K in pre tax accounts to not end up paying taxes.
My gross income $70,000 (due for increase)
Husband's $80,000
Boss is really good, and work cant complain, so might be here for awhile
I dont think there's any other perks with the current 401K :(
I have been thinking about setting up my own IRA account, but I wasnt sure if I still get the tax break with the combined income? I have read it somewhere that there's an income limit when you have a 401K (Husband doesnt have 401K since he's a per diem employee)