Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

1 Bump

401k or Roth?

which would you do and why.

Answer Question

Asked by sue118 at 1:31 PM on Dec. 10, 2010 in Money & Work

Level 17 (4,318 Credits)
Answers (6)
  • I personally think Roth is better for you in the long run, or over a long period of time. Also I believe if you needed to touch your retirement money there is less of a penalty with the Roth.

    Answer by bellsandheels at 1:32 PM on Dec. 10, 2010

  • Does your company match your 401K contributions? If so, then go with that.

    Answer by musicpisces at 1:33 PM on Dec. 10, 2010

  • I have a Roth IRA. I can only add 5k/month, which is going to get me nowhere slowly, but it's better than nothing. If I had a job I would go with a 401K, especially if the company matched my contributions.

    Answer by Aquarius80 at 1:40 PM on Dec. 10, 2010

  • Most companies offer contribution matches on the 401K's, so I would start there and then if you still have additional money to invest you could also open up an IRA. I would start with the 401K though.

    Answer by slw123 at 3:39 PM on Dec. 10, 2010

  • It depends upon your work situation and your income level. If your company puts money into your 401K, then that's an obvious choice over a Roth. There are different limits to how much you can put in each. You need to investigate the fees associated with each one, too. It's not really an either-or question.

    Answer by evwsquared at 4:15 PM on Dec. 10, 2010

  • I'd invest up to the match with the 401K and then I'd switch to a Roth. There is an annual contribution limit of $5000 a year for the Roth. So if you manage to max that out, then I'd go back to the 401k.

    Good question =)

    Answer by Erica_Smerica at 5:37 PM on Dec. 10, 2010

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.