Author Topic: Am I contributing too much to 401k/IRA?  (Read 2620 times)


  • 5 O'Clock Shadow
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Am I contributing too much to 401k/IRA?
« on: July 21, 2015, 04:37:39 PM »
New poster. Please be gentle.

Spouse and I had always planned to do the conventional retirement age of 65ish (We're currently 40 and 33). We max out our 401k's and Roth IRAs, and have a combined total of about $550,000 in those accounts. We also have about $75k in Vanguard funds, into which we contribute an additional $1,000 every month, and another $200k in cash, which we're trying to figure out what to do with.

Recently, we've decided that neither of us wants to work another 25 years before retiring, and we'd like to ramp up our saving and retire in 10 years max instead. So my question is, how long do we keep contributing to 401k and IRA's? I know it's smart for taxes, but it also seems wonky to put the bulk of our savings capabilities into funds that we'd have a hard time accessing until we're 60. And while Spouse's company offers a moderate 401k match, mine doesn't match at all.

tl;dr: If we want to retire early, are we contributing too much to traditional retirement accounts -- and what should we do instead?


  • Magnum Stache
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Re: Am I contributing too much to 401k/IRA?
« Reply #2 on: July 21, 2015, 05:01:43 PM »
As matchewed said, the short answer is "no."  And, if your 401k allows, you might be well served to contribute even more to a Mega Backdoor Roth.  Good luck!


  • Handlebar Stache
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Re: Am I contributing too much to 401k/IRA?
« Reply #3 on: July 21, 2015, 05:31:31 PM »
Good answers so far.   You should also get comfortable with the information in this thread:

Cheddar Stacker

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Re: Am I contributing too much to 401k/IRA?
« Reply #4 on: July 21, 2015, 06:49:30 PM »
What they said. Plus daaaayyuummm you have a nice little investment fund.

$825k and at least $275k of that is post tax. You guys are set. Forget 10 years, I don't know what your expenses are or what your number is, but you are in a very good position to quit work within a few years. Keep reading around here. Check the madfientist links and gocurrycracker links in the tax subforum. Read up on tax strategies and drawdown strategies (check the drawdown series at

Keep maxing out the 401k's/IRA's for the next couple years while you still have earned income.