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I'm 31. I put 11% of my $$ into a 401k.

I put about $600 a month into a high interest savings account.

I max out my ROTH IRA.

I'm wondering if I should max out a traditional IRA as well or if there is another asset I should be putting my money into.

Thanks.

Ether
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Jack
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3 Answers3

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Your max contribution to your Roth IRA and your traditional IRA share the same cap, so if you are maxing your Roth IRA you cannot have a traditional one as well. I would put the additional into your 401k or perhaps a 529 if you have any kids.

en1gmatic325
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Roth and 401k are first because with the Roth you have tax free withdrawals (awesome!) and with the 401k you have tax free contributions (awesome!) as well as potential employer matching. Traditional IRAs would be the final thing I would contribute to after both of those. And in your case, unless you make around 150k, you aren't maxing your 401k; so I'd do that first.

Michael Pryor
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Another option if it is available is a Roth 401k. It is similar to a Roth IRA in that you pay taxes up front, but the withdrawals are tax free.

SchwartzE
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