Ep. 162 - Roth IRA vs Roth 401k - Which One is The Best? (Ask the CFP®) - a podcast by Jeff Rose
from 2022-05-19T13:07:19
Decisions, decisions. Sometimes we are faced with difficult decisions, they may both be good choices, but we have to pick one.
Today we are talking about the Roth IRA as I answer a reader question.
This question come from Carlos: “I just started a new job after a lengthy stretch of being unemployed. My last job had a 401k but I was excited when I found out my new job offers a Roth 401k. I already have a Roth IRA - thanks to you! - but I’m not sure which one to do. I wish I could do both but financialy I can’t afford it. If I had to pick one which one would it be - Roth IRA or Roth 401k?”
If you have access to a 401k, your employer has the ability to add the Roth 401k provision. If they do n to have the Roth provision yet, you could talk to HR to see if they are willing to add the provision.
00:00 Intro
04:35 Similarities of Roth IRA and Roth 401k
07:43 Early withdrawal restrictions
09:12 Key differences of Roth IRA vs Roth 401k
12:24 Loan provisions
15:21 You are in charge of your investments
19:02 Is that your final answer?
Resources:
The Ultimate Roth IRA Conversion Guide – Everything You Need to Know
401k Contribution Limits for 2022
The Traditional IRA vs. the 401(k) Plan – Which Plan Wins?
Roth IRA Rules and Contribution Limits for 2022
https://wealthhackerlabs.com/ask/
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