Author Topic: Go back to 401k after the match & IRA, or head to taxable account?  (Read 422 times)

OTreg

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After contributing to the point of the company match for a 401(k) and contributing the maximum to a traditional or Roth IRA, I have read from some sources that the next step should be to go back to the 401(k). Conversely, I have also read from some (fewer) sources that using a taxable account is preferable before returning to the 401(k) (due to fees, limited investment choices, age rules for those of us who are retiring quite early, etc.). Each personís situation is different, but what do you think are some guidelines that help one decide which order to use? Thank you.

reeshau

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Re: Go back to 401k after the match & IRA, or head to taxable account?
« Reply #1 on: January 10, 2021, 08:29:33 AM »
The first answer, here, is to look at the Investment Order thread, which talks about the what and the why.

https://forum.mrmoneymustache.com/investor-alley/investment-order/

terran

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Re: Go back to 401k after the match & IRA, or head to taxable account?
« Reply #2 on: January 10, 2021, 09:31:52 AM »
Maxing out tax advantaged accounts before taxable is usually the right choice. The only exception would be VERY high fees in the 401(k) and planning to stay at the employer a long time (otherwise even a high fee 401(k) can be ok since you can roll over to an IRA when you leave). What investment options are available in your 401(k) and what fees do they have?