Investing Fundamentals

To Roth or Not to Roth? That is the Question

Updated on March 22, 2020 Updated on March 22, 2020
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"To Roth or not to Roth"
Table of Contents  
  1. Show Notes

In this episode, we answer another listener question about whether he should invest in a Traditional 401k, a Roth 401k, or both.

If you’re employed, chances are your employer offers a 401k. Normally, this would be a Traditional 401k, but check with HR to see if they offer both a Traditional and a Roth.

401ks allow you to invest your pre-taxed income, and sometimes employers will match up to a certain percent. If they do, take it — it’s free money. However, Traditional 401ks have a yearly limit as to what you can invest. Therefore, some employers will also offer a Roth 401k which allows you to invest after-taxed money from your check — there is also a limit too.

If you can afford to max out both, go for it. If not, go with a Traditional 401k, and anything over the limit to which you can invest, through that in the Roth — hopefully, your employer will do some matching there too.

There are no stupid countries, only stupid people.

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Show Notes

Health Savings Account (HSA) — This is a savings account you can open to use for health-related costs.

Matt Giovanisci - Podcast Co-Host
Hey, I’m Matt (Gio), a swimming pool and coffee blogger. I used to be terrible with money until Andrew helped me out. Now, I'm a financial big whig... sort of.

I live South Jersey (actually, I just refer to it as Philadelphia). Follow me on Twitter and we can chat about pools, beer or internet marketing.

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