What else should I be doing to prepare for retirement in addition to my current retirement accounts?

I recently changed jobs and I'm rolling over my 401(k) from my previous employer into a traditional IRA. My new employer offers a 401(k) and will match my contributions up to 6 percent. I want to contribute the maximum I'm allowed to my retirement. I'm considering three options: maxing out my new 401(k) contribution, or taking the 6 percent match and putting extra money each month into the rollover IRA to reduce my tax deduction because of my income, or setting up an additional Roth IRA. Which of these would be the best option? Would it be too much work to have a 401(k), traditional IRA, and Roth IRA, or would it be worth my time?

Retirement, IRAs, Taxes, Tax Deductions / Credits
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March 2018

Having flexibility in retirement is an advantage and having all three wouldn't be too difficult.  But without knowing your age or income levels I cannot give you sage advice.  As a general rule though, the younger you are and the lower your tax bracket, the more advantageous a Roth is.  This is because you have more time to compound & grow your assets to make up the out of pocket tax liablity of contributing to a Roth versus a before tax retirement account.

There are also income limits that may preclude you from contributing to a Roth.  You definitely want to get the 6% match, and depending upon how good your 401k is - investment choices, whether you have a full brokerage options etc... - would also affect your decision.  And you are doing the right thing by rolling your old 401k into an IRA for flexibility, lower fees, and virtually unlimited investment options.  Each time you change jobs you should roll the 401k into this recepticle.  

Your thinking is good though, and your decision is dependent upon your income, your current 401k set-up & options, age, income level, expected retirement date/age.  So again, I need more information to give you solid advice other than the obvious of saving as much as you possibly can for retirement.

Sorry couldn't be more help, Dan Stewart CFA®

March 2018
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March 2018