should i put more money into my retirement plan? or put that in roth ira?

Question

ok, heres the deal,, i put in ten percent of my salary in my retirement plan (us government thrift savings plan) they match the first 3 percent dolalr for dollar and the next two percent 50 cents per dollar. the other 5 percent they do not match... would i be better offf putting that other five percent in a roth ira or keeping it in my work savings plan?? i dontp ay taxes on the money until i take it out at 59 and a half years old,,but since they dont match the money is there a btter way to invest it?? im 39

Answer 1

I think the answer depends on your current tax bracket. If you are at a low one, put the minimum in your workplace retirement in order to fully qualify for the matching funds, then the rest in the Roth. That way you pay low taxes now and have it tax free later.

If you are in a higher bracket now, put it in your workplace retirement and avoid the taxes now. When you retire, you might be in a lower bracket and pay less taxes.

Answer 2

Put the max in the Roth first, since it is tax free at retirement..and the rest into the 401K. And at retirement, take out the 401K money first so the roth still has time to grow tax free

Answer 3

I'd put SOME money in a Roth IRA since you won't have to take money out of a Roth IRA like you would with a Traditional IRA or TSP at 70.5 years old. It would be good to have some money (the more aggressive growing money) in a Roth IRA since it could be the last money you would ever touch (at a much older age than 70.5 years old).

Answer 4

I would put the maximum into your Roth ($4,000), and then put the rest in your retirement plan.

Answer 5

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