I have a 401k at work that I have been putting 20% of my check in for at least the last 15 years, 5% in work Roth 401k and then a separate brokerage account with Fidelity for rainy day money.

    I was thinking about changing some of those %s to funnel into a separate Fidelity Roth but want to see if there were any benefits to also having a traditional IRA. I would probably hit both contribution limits for both IRAs. My plan is to zero work Roth 401k then 6% 401k > max separate Fidelity Roth IRA > max traditional IRA > rest to brokerage account

    I know a lot of it has to do with tax brackets at retirement but any insight would be great if people go with both IRAs (Roth and Trad) and a brokerage account. I’m late 30s if it matters

    Edit: I guess my question is why people would go with both IRA types? I saw on the Fidelity FAQ that some do both

    Insight on both a Roth IRA and Trad IRA?
    byu/Epoch998 ininvesting



    Posted by Epoch998

    2 Comments

    1. AntiqueProfessor5134 on

      I thought the IRA cap is shared among trad and Roth? So if you’ve maxed Roth there shouldn’t be any sum left to contribute? Maybe I’m misunderstanding what you’re asking

    2. Traditional IRAs are pretty useless. Just go Roth for the IRA. If you want “Traditional” funds, use your 401k.

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