Author Topic: Wife's new job: comparing account options  (Read 1200 times)

NoStacheOhio

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Wife's new job: comparing account options
« on: October 08, 2016, 10:51:30 AM »
My wife just started a new job, and I'm thinking about what to do for retirement accounts.

Our current accounts:

Fidelity 403(b) - me (VIIIX, VIEIX, VTSNX)
Fidelity tIRA - me (ITOT)
Fidelity Roth IRA - me (ITOT)
Fidelity tIRA (rollover) - wife (ITOT)

Her new job offers a 401(k) through Merril Lynch with a Russell 3000 fund at 0.06% plus a $53/year plan fee, no contribution matching.

We aren't maxing any of our current accounts, so I'm not sure if it's worth enrolling in the new 401(k) to pay an annual fee. None of the other accounts have an annual fee.

Our gross is right around $100k, AGI probably in the $70-80k range. Eventually, I'd like to max our 401(k)/403(b) space, but we have to knock out some debt first, and I'd like to increase our income too.

Should I just focus on putting as much as possible into our existing plans, and skip the new 401(k) option? I'm not sure how long she'll be at this company. She's technically a contractor right now, so the 401(k) is through the staffing services company (they're paying her on a W-2), but she's hoping to move to full employee at the university where she's doing the work.

DrF

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Re: Wife's new job: comparing account options
« Reply #1 on: October 10, 2016, 08:39:07 AM »
Since there's no company match, I'd probably not contribute to her 401k. You have just as good options with fidelity. Kill any debt higher than ~4% fast, and always get your company match (if offered).

NoStacheOhio

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Re: Wife's new job: comparing account options
« Reply #2 on: October 10, 2016, 09:23:11 AM »
Since there's no company match, I'd probably not contribute to her 401k. You have just as good options with fidelity. Kill any debt higher than ~4% fast, and always get your company match (if offered).

Thanks, that's what I was thinking.

I'm hitting the match for my 403(b), so at least we're good there. :)

Scandium

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Re: Wife's new job: comparing account options
« Reply #3 on: October 10, 2016, 09:48:23 AM »
I agree. You have $18k + $11k = $29k of pre-tax space so I would use that before putting any to her 401k. But if you max the others out and  the option is a taxable I would use her $18k space first.