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My employer offers several retirement plans. Which should I participate in?
By Tom Dunn | January 11, 2009
Todd, MD asked:
My many options include a 401K (which I am maxing out), a Key Savings 457(b) Plan, a Deferred Compensation Plan and a Tax Deferred Savings 403(b) Plan. I was planning to open an IRA for myself and my wife, but should I think about these others first?
Marion
My many options include a 401K (which I am maxing out), a Key Savings 457(b) Plan, a Deferred Compensation Plan and a Tax Deferred Savings 403(b) Plan. I was planning to open an IRA for myself and my wife, but should I think about these others first?
Marion
Topics: retirement planning |
January 14th, 2009 at 8:00 pm
If any of the plans have any type of employer contribution, accelerated interest, promise of future payouts, share the details. They may be worth considering.
If not, considering you are maxed out on your 401k, I would consider opening Roth IRA’s. You should be able to do $8,000 - 10,000 (depending on your age - over or under 50) annually between the two of you. This is limited for people filing joint with income above $156k.
This will diversify your tax scenario in retirement a little, giving you a couple of different options (one taxable, the other not) to withdraw from depending on your tax brackets each year.
Good luck!
Ken Clark
Certified Financial Planner