Author Topic: New Job Question  (Read 1720 times)

Splyth

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New Job Question
« on: June 18, 2016, 10:28:10 AM »
So I took a major step up in income from the annual salary of 32K/a year to 75K/year

Before I was focusing on paying school debt off and slowly upping my 401K

Now however my school debt will be paid off very quickly. (It's a shade under $4000)

I've already opted to max my new employers 401K
And, if I understand correctly I can contribute a max of $5,000 to an IRA (I currently have a traditional IRA)

So is it possible to put back any more money pretax; or do I have to bite the bullet and open a standard investing account?

Sorry I should mention I'm trying to put back 40% Which, by my back of the napkin math, is about 30K\year
Currently i can put back 23K\year pretax between the 401K and the IRA if my math is right.

Hotstreak

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Re: New Job Question
« Reply #1 on: June 18, 2016, 10:33:36 AM »
You can also invest in an HSA, if you are eligible for one (based on what kind of health insurance you have).  Otherwise, yes, it sounds like time to open a standard non-tax-advantaged account.


Also, congrats on your new job!

Splyth

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Re: New Job Question
« Reply #2 on: June 18, 2016, 10:38:06 AM »
Thanks!

I checked on the HSA and it looks like I can't contribute to that directly. My employer puts
money in that. I do have an FSA but I'm leery of putting much money in that for the whole
"disappears at the end of the year" reason

Still, as far as problems go, this is an awesome one to have.

SKL-HOU

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Re: New Job Question
« Reply #3 on: June 18, 2016, 02:02:40 PM »
Typically you can't put money in an HSA and an FSA at the same time unless the FSA is limited purpose (meaning dental and vision). You should be able to put money in your HSA if you have a high deductible plan unless your employer is putting in the max already.

Kaikou

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Re: New Job Question
« Reply #4 on: June 18, 2016, 06:47:18 PM »
Congratulations on the new job and salary jump!

ormaybemidgets

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Re: New Job Question
« Reply #5 on: June 19, 2016, 01:54:51 PM »
I'm in this same situation - isn't it better to max the 401k before putting anything in a Roth assuming no match on the Roth?