Which is better?

[lavagirl]

I was going to pay off my student loan next month~ $5k.   But we usually owe on taxes and I was wondering if it would make more sense to put that money towards our 401k. We are not maxing out our 401ks and our income is about 180k.  We've been focused on debt payoff and it would make me feel really good to pay the loan off, but would it make more sense financially to put that money in our retirement accounts to owe less taxes?  The student loan rate is 3.9%   I appreciate your advice! Thanks!

[therethere]

Throw it all into your 2016 401k. Pay off the student loan with excess money in January and February. Then use the rest of 2017 to max out your 401k.  25% vs 3.9% is no brainer!

[nereo]

I agree with therethere.  Also, I'm curious why you aren't maxing out your 401(k)s with your income of $180k. While short of details, that seems like a giant red flag.

[boarder42]

you should do a full case study if you are pulling in 180k and not maxing 401k's

[JAYSLOL]

you should do a full case study if you are pulling in 180k and not maxing 401k's

+1

[arebelspy]

We are not maxing out our 401ks and our income is about 180k.

Change this now.  :)

We've been focused on debt payoff

That's fine, but in the meantime, you gave a lot of free money to the government.

Congrats on getting those essentially paid off, now ramp up your savings immediately!  :)

[Metric Mouse]

you should do a full case study if you are pulling in 180k and not maxing 401k's

+1

I'd love to see the spending in this bracket!