Should I fund a 401(k), IRA, or Roth IRA?

This video explains when it makes sense to fund a 401(k) versus an IRA or Roth IRA. Consideration should be given to your tax bracket and any available employer matching contributions.
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Deciding to put money aside for the future is a great step towards a secure retirement. Should you fund a 401(k), IRA or a Roth IRA? Well, like so many financial decisions, it depends.
If you get a matching contribution from your employer, you should definitely take advantage of that. For example, if you put 3% into your 401(k) and your employer puts in 3%, now you are up to 6% bring saved.
If you are in a low tax bracket a Roth IRA or Roth 401(k) should be considered a priority. While there is no current year tax deduction with Roths, like there is with traditional 401(k)s and IRAs, the money in a Roth typically grows tax-free. You may not be eligible to fund a tax-deductible IRA or a Roth IRA if your income is too high, so make sure to evaluate that ahead of time. If you are in a high tax bracket now, you probably want to make pre-tax deductions to save money on taxes.
At Whitford Financial Planning we are here to help you make smart financial decisions! Visit our website at whitfordfp.com where you can schedule a call or send us an email with your questions!
*This video does not constitute legal or financial advice. You should consult with a financial professional to determine what may be best for your individual needs.