Hi All.
I have been contributing to a 401k for many years now. It has grown nicely, and I feel like it is doing well. I have finally reached a point where I felt like I can contribute the maximum $18k (per IRS rules). I was very excited about this.
Until today.
According to IRS definition, I have just officially become a "Highly Compensated Employee". Word on the street is, now that I have been tagged as such, my pre-tax 401k contributions will now be limited to 6% of my salary.
Now this puts me in a position where I was planning to put more into my retirement, and I need other options.
My guess is that I should create and max out a ROTH IRA also?
Beyond that, I also have a high deductible health care plan that I can contribute $5k per year, pre-tax.. and once I turn 70, I can withdraw it for ANYTHING (not just medical expenses). I realize my ROI here will be very low, but pre-tax is enticing.
If I did these 3 things... it would get me right near that same $18k level that I was planning on putting into my 401k.
Thoughts on this strategy? Or suggestions for other investments?
FWIW, I am still about 20 years away from retirement.
Thanks.
Submitted June 26, 2017 at 02:05PM by smoelheim http://ift.tt/2tbuG7F
