Author Topic: If I have around 5-10k to put in my s401k or roth ira which should I fund 1st  (Read 477 times)

lilybluerose

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Hi! I am new to investing. My husband and I are coming up on a year of doing so in November. Right now both of us have our roth ira maxed for 2017 and 2018.

I recently opened a solo 401k and put in 1k

I am self employed as an llc. Both the 401k and roth ira are funded with vangaurds target date retirement fund.

My husband and I really want to move within around 2-3 years. We are working on saving up a minimum of around 60k for a 20% down-payment. This should take us around 12-15 months to do.

I still want to put some into our retirement accounts even if it takes a little longer to save to move. Originally our plan was to just max out both of our roth ira for 2019.

Now I am wondering if it would be better to just put that money into my solo 401k?

Thanks for reading!

haggard

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I can't recommend what you should do, but I'll tell you what I have setup to do. I also am a single employee business owner.

So end of last year I sat down with my accountant and we laid it all out, I had a traditional and Roth IRA at the time and setup a single 401k.  We were too late last year to setup and fund the s401k and take the tax deduction so we did Roth and traditional for last year.  I might skip the Roth some years when my income is higher than expected and try to look for as many tax deductions as possible.  My account in 10 minutes or less can give me a couple of estimations with the tax deductible accounts vs not.  I personally try to pay as little as legally possible in taxes, so Roth's don't always appeal to me, but I do have one setup and is funded and in down years I plan to max it out, because they are nice especially when I am 30 years away from retirement.


sisto

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