I've read the wiki on 401k fund selection already. I have two 401k. One from my previous company and one with current company. I never rolled the first one over because the fees were better on the old one and I had enough in it that they wouldn't force me to move it. For background info I'm a single female making $62k plus a $5k annual bonus. I have additional income from an Airbnb ($4k this year so far). I currently contribute $358/pay check across 26 pay check.
I've been learning more about investing and decided to look at the expense ratios on both 401ks. The one from the old company is great with an ER of .09% (VIRSX). My current company is with Nationwide and for the last two years I've been invested in their NWNBX target date fund. The ER is 1.15%! When I look at the other Nationwide options they all have high ERs.
Now the wiki says if you employer plan has expensive funds then you should consider an IRA. Matching isn't an issue here because my employer does a profit share, not a percentage match. Even if I contribute nothing, they would still contribute the same amount, so I could go the IRA route if it made sense. But if you are investing in an IRA outside of your employer plan how do you reap the tax advantage of using pretax dollars? I can invest significantly more per pay check because it is handled by my employer pretax. How do I get into a plan with a better ER and still get my tax advantage each paycheck, rather than once a year at tax time?
I'm just learning about all this so there could be other info I'm not even aware of that limits or prevents my ability to contribute to an IRA.
Submitted September 14, 2018 at 12:01AM by Blackeyes24 https://ift.tt/2CSP6Zt
