Author Topic: really easy investing Q  (Read 2290 times)

dandypandys

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really easy investing Q
« on: January 14, 2017, 02:38:48 PM »
I have a few burning investment questions that are a bit beginnery, even though I have read the Collins book, think I am a bit slow. This is the first:

Does the match from my work have to be included in the 18k irs limit? Or do I only add what I put in myself? Below is what it says on their site.


College contributes 7% of base salary, with no employee contribution requirement. Then, College will match the employee's contributions, up to 4% of base salary. The maximum college contribution is 11% of base salary; however, the employee can contribute additional contributions over 4%, up to the annual IRS limits.



shuffler

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Re: really easy investing Q
« Reply #1 on: January 14, 2017, 03:06:07 PM »
Here you go:
https://www.google.com/search?q=401k+contribution+limit+employer+match
... your answer is in the excerpt at the top.

dandypandys

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Re: really easy investing Q
« Reply #2 on: January 14, 2017, 03:22:40 PM »
Thanks! Sorry I didn't realize my Q was so easy that google would suffice!

My next Q is where to put my money after i have the match taken care of. I am still fuzzy on it, I read the sticky on 'investment order' and it is confusing to me that my college offers a 403b roth so I have some of my retirement money in the 403b and some in the 403b Roth - a meeting with the retirement guy said I should just put it all the 403b Roth .. What is the difference between Traditional Roth and my 403b Roth?
Maybe  I should just put the extra (after I get the match) in a Vanguard taxable account.. that way it can be withdrawn any time and I don't have to worry about confusing stuff like conversion ladders etc. 

Metric Mouse

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Re: really easy investing Q
« Reply #3 on: January 14, 2017, 11:49:47 PM »

dandypandys

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Re: really easy investing Q
« Reply #4 on: January 15, 2017, 06:12:33 AM »
Very good! ) You guys are awesome!
So I think I am finally becoming slightly unfuzzy and know what to do now :) I am advised to pay taxes now since I am in the lower income bracket so will contribute more to the 403b Roth from now on vs the 403b.

My fuzziness came a bit from wondering why one would bother with the 403b Roth at all after the match, because wouldn't it be the same- but a lot more flexible, to just open a Vanguard taxable account and do that instead, since both are taxed now. But then after reading your link I see it must be because of  capital gains taxes being spared on 403bRoth but are on the Vanguard taxable account. Am I right? Or is there another benefit to continuing to put money in the 403bRoth that would warrant giving up the flexibility of access on a normal taxable account?



boarder42

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Re: really easy investing Q
« Reply #5 on: January 15, 2017, 11:41:20 AM »
Go to the investing forum and look at the investment order sticky at the top it will answer every question to maximize return and optimize taxes

seattlecyclone

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Re: really easy investing Q
« Reply #6 on: January 15, 2017, 11:58:23 AM »
Roth is generally better than taxable because you won't need to pay taxes on the dividends that come in every year, or on the capital gains when you sell. There are a few strings attached to this Roth money that you should be aware of, but even for early retirees the Roth is generally a better deal than a taxable brokerage account.

dandypandys

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Re: really easy investing Q
« Reply #7 on: January 15, 2017, 12:09:34 PM »
Thanks! I did read it yes, just fuzzy on it because my work offers a 403b Roth, and I might be getting confused between steps #1 and #4 in that list.
I am getting it straight in my head now (perhaps?) and see that I have to weigh the flexibility of taxable ( eg-might want to buy a property in 15 yrs) with the savings  of the 403b Roth in taxed dividends and capital gains. This is for $ after the match.
I just read this again and it has helped too.
http://jlcollinsnh.com/2012/05/30/stocks-part-viii-the-401k-403b-ira-roth-buckets/

I thank you so much for answering my easy questions- love this forum!
« Last Edit: January 15, 2017, 12:30:05 PM by dandypandys »

Metric Mouse

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Re: really easy investing Q
« Reply #8 on: January 15, 2017, 10:36:28 PM »
Thanks! I did read it yes, just fuzzy on it because my work offers a 403b Roth, and I might be getting confused between steps #1 and #4 in that list.
I am getting it straight in my head now (perhaps?) and see that I have to weigh the flexibility of taxable ( eg-might want to buy a property in 15 yrs) with the savings  of the 403b Roth in taxed dividends and capital gains. This is for $ after the match.
I just read this again and it has helped too.
http://jlcollinsnh.com/2012/05/30/stocks-part-viii-the-401k-403b-ira-roth-buckets/

I thank you so much for answering my easy questions- love this forum!

You're welcome! Welcome to the forum.