I am a single 24m software engineer making about $140,000, living in Texas with no state income tax. I'm trying to decide the order in which my retirement investments should be. I've come across a lot of conflicting information about traditional vs. Roth 401(k)s. Additionally, I don't receive a 401(k) match at work; they simply provide me with 8%, and no match is required. I can't open an HSA because I have a low-deductible plan, only an FSA.
My current plan:
- Traditional 401(k)
- Roth IRA (backdoor)
- Brokerage Account
However, I see many people advocating for both Roth accounts and suggesting the following order:
- 401(k) for a match (doesn't apply to me)
- Roth IRA
- Roth 401(k)
- Brokerage Account
Considering my income level, age, and career, does my current plan make sense, or should I be doing something different?
Submitted January 05, 2024 at 01:23AM by bcmasters https://ift.tt/uTgDZwo
