My income went from about 120k to around >200k recently this year. Up until now I was only putting about 4 percent into my 401k since there was no match yet. I also started a Roth IRA this year and I have a rollover($14k) from a previous Roth 401k. Do I need to take out this year’s contributions from the Roth IRA?

    I know at this income it probably makes sense to switch to maxing pre tax 401k for the tax break. At the same time I want to save for a house in the next one to three years so I need to balance long term retirement with short term cash. Should I switch from Roth 401k to Traditional 401k?

    I’m also trying to figure out the tax side since my withholdings may not line up perfectly. As both the w-4s were filed as them being my only job. Should I fix that through a W-4 adjustment or just put the extra aside myself in savings and pay it when I file

    What’s the smarter move here max the 401k and save the rest for the house or keep the 401k lighter and stack more liquid cash, I’m about 25yrs old.

    I was on track to max out New Roth IRA for the year and about $400 a month in taxable

    Income up to 200k this year what should I do with 401k and new Roth IRA
    byu/Minimum-Ad9517 ininvesting



    Posted by Minimum-Ad9517

    Leave A Reply
    Share via