Only 401k or both 401k and IRA?

Guest 0.10 Dollars($)

I HAve ben contributing to my 401k, still do i need to have a roth IRA? pls advice.

allan · Joined: 16 Oct 2006 Posts: 16 7.75 Dollars($)

Hi Aquib,

Welcome to MortgageFit Forums.

It's really good to see that you are planning about your retirement.

It is best to invest in a 401(k) up to the employers match. But if your employer doesn't offer a matching contributions then it will be good to go for Roth IRA.

When you invest in Roth IRA you wont get tax deduction as you are getting for 401(k). But all the withdrawals will be tax free in retirement. And it is almost certain that you will be in a higher tax bracket when you retire then you are now.

Thanks,

Allan

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