Trying to understand pros and cons for this. Our company only offers $24,500 max for either pre-tax or post tax. Now with the 50+ catchup option of $8k 401k Roth post tax, is there any instance where a person should NOT contribute?
For instance, households who already hit the highest income bracket, would opening a regular Roth IRA any better than a 401k?
401k 50+ catch-up contributions
byu/Ramen_cat2024 ininvesting
Posted by Ramen_cat2024
1 Comment
It’s not your company. Those are limits the government sets.
There’s no real meaningful difference between a Trad/Roth 401k and a Trad/Roth IRA respectively in terms of how they work. The limits are much higher on the 401k.
If you’re in the top bracket, you have to do a backdoor Roth, you make too much money to do it normally. If you’re in the top bracket, you should be maxing out a Traditional 401k and a backdoor Roth and an HSA if you can swing it.