Currently trying to plan my budget for next year. My marginal tax bracket is 22%. From running the numbers I can do one of the following:
- 8% of gross salary to 401k, and 7% of gross salary to Roth IRA
- OR 17% of gross salary to 401k
There is no 401k match, but a few decent low fee funds (currently in a fund tracking the S%P 500 with an ER of like .02%).
Option 2 would allow me to contribute about $2000 more over the course of the year as far as I can tell. If it matters, I'm 37, so a good amount of time until retirement.
Which is the better option?
Submitted October 24, 2021 at 08:44AM by jrod2183 https://ift.tt/3GeXXBB
