Need 401k / Investment help

Amazon
bVSN74

Go to company page Amazon

bVSN74
Sep 3, 2020 20 Comments

I’m not wonderful with this type of stuff but I have been trying to get into investing.

My employers match is 4% on my 401k but I did 6% and did 3 in traditional and 3 in Roth. No idea if this is the best idea, at my last employer I did it all in Roth. It suggested I do 10-15% but that was a lot.

Next thing is around investing - I have a vanguard account and wanted to invest in whatever the s&p 500 is. Am I correct that it’s okay to have a vanguard ETF account AND my 401k ?

Thanks!

TC: 235k

#401k #investment

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TOP 20 Comments
  • Amazon
    qazwsxedc1

    Go to company page Amazon

    qazwsxedc1
    Employer match is on pretax I think . You max out pretax (19500 for the year) . You can put an additional 10% pre paycheck into Roth
    Sep 3, 2020 5
  • Imperial Capital
    triquetra

    Imperial Capital

    triquetra
    You should definitely max it out
    Sep 3, 2020 2
    • Amazon
      bVSN74

      Go to company page Amazon

      bVSN74
      OP
      What is considered me maxing out though? Like what %
      Sep 3, 2020
    • Amazon
      Muwp65

      Go to company page Amazon

      Muwp65
      Maxing out means

      (a) $19,500 of your salary to 401k (either pre-tax or Roth). Amazon matches 50% of this, up to 2% of your salary.

      (b) 10% of your salary to mega backdoor Roth 401k.

      (c) $6000 to Roth IRA backdoor.

      Or if you plan to die young instead of saving all of your money for when you're too old to enjoy it, feel free to cut back on some or all of (a)-(c) and buy that brand new Tesla.
      Sep 3, 2020
  • Sephora
    ahrce526

    Go to company page Sephora

    ahrce526
    At 235k there’s no reason you shouldn’t be maxing your 401k. If I were you I would do all in traditional 401k and then put 6k in a backdoor Roth IRA.
    Sep 3, 2020 2
    • Amazon
      bVSN74

      Go to company page Amazon

      bVSN74
      OP
      What is a backdoor Roth IRA? Also when you say maxing 401k, I thought by getting the employer match that was maxing? If not then what is maxing?
      Sep 3, 2020
    • Sephora
      ahrce526

      Go to company page Sephora

      ahrce526
      No-you can put more in your 401k-up to 19,500 annually. You exceed the income limit for a Roth IRA so you would need to use the (legal) “backdoor” method of contributing 6k to a traditional nondeductible 401k and subsequently converting it to roth. Bottom line is you should take advantage of any tax advantage you can. Consider doing an HSA also.
      Sep 3, 2020
  • I always have been a firm believer of maxing out your 401k contributions.
    Sep 4, 2020 0
  • Amazon
    KappaBeta

    Go to company page Amazon

    PRE
    Zenefits, Qualcomm, NVIDIA
    KappaBeta
    Amazon can’t do backdoor Roth, because it has un proportionally high number of low wage workers. But backdoor Roth IRA is totally doable at F & G.
    Sep 3, 2020 2