How to Maximize the Higher 401(k) Contribution Limit

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Your employers contribution does not reduce your 401k (Roth or conventional) contribution limit.

Lee of NY 12:44PM January 10, 2013

If you contribute the max does the employers contribution count or no

alexander dezoysa of CA 10:58PM August 25, 2012

Unless you have a need to reduce your marginal rate, a Roth will never be a loser.

Maximo of CA 2:33PM April 13, 2012

If the government ever goes to a VAT, then Roth IRAs and 401ks could tun out to be losers assuming conventiol income taxes come down somewhat as a result.

richard esposito of MD 8:26PM February 22, 2012

We are currently in a low tax threshold. Those of us near retirement say within 3-5 years must think about what taxes will be when we start to withdraw our funds. So simply saying to max out 401Ks with no future consideration of the tax rates is short sighted. I would suggest if you do not have the money to max out a 401k and max out a Roth IRA; do the Roth first and then what is left over split between a 401k and a boekerage account that will let one invest in tax advantaged vehicles such as municipal bonds or perhaps limited partnerships. As government goes further and further in debt the tax rates are sure to rise dramatically within 5 years. Then pulling money out of a 401k will have a huge bite from the withdrawal to the IRS! ONE SIZE DOES NOT FIT ALL1

Jake Reed of WA 11:17PM November 25, 2011