I’ve always heard the order of investing for retirement should go as follows: Contribute to Employer Tax Deferred Plan up to the match amount Max out Roth IRA Back to Employer Plan and max it out Contribute to Taxable accounts
That’s what we’ve been working on for the last three years. My wife has a 403(b) and a Roth IRA. I haven’t had an employee plan, so I’ve just been maxing out my Roth IRA and that’s it.
I know the assumption people rely on for this plan is that their tax bracket in retirement will be higher than what it is now, hence taking the taxes now in lieu of taking them in retirement.
I just got a job that offers a SIMPLE IRA (tax deferred account similar to 401(k)) with a 3% employer match.
Our adjusted gross income last year (married filing jointly) was around 95k.
Is this still the right plan to follow? Or should things be switched around and focus more on tax deferred plans? And other than just pure opinion or things you’ve heard before, what’s the reason for what you’re suggesting?
Submitted April 25, 2021 at 08:58PM by Delta263 https://ift.tt/3xmyy4v
