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longshanksasaurs t1_ja68l6y wrote

Reply to comment by david12795 in Help me understanding I am using my employer's 401K correctly. by david12795

For your previous 401k: only roll it into your Roth IRA if it was Roth 401k money. Otherwise, rolling into your current employer 401k is a fine choice.

For your current contributions: the standard advice is to go in this order:

  1. 401k up to the match
  2. Roth IRA up to the limit
  3. 401k up to the limit
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david12795 OP t1_ja6d7c6 wrote

thank you! ill have to login to my empower (my previous employer) and check to see what it was.

i came across employee pre tax and employee roth 401k when trying to change my contribution amount to 10 percent. for some reason, i got a little confused on what pre tax is, but then thats another word for traditional lol. it seems employee roth 401k is the way to go.

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but thanks for your suggestion, ill focus more on my IRA and then eventually work more on my 401k up to the limit (or as high as i can)

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longshanksasaurs t1_ja7hnt6 wrote

Sure thing. I suggest just using the traditional (pre tax) 401k, then going to Roth IRA, then back to traditional 401k

Here's some reading, if you have the time:

/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/

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david12795 OP t1_ja7l5hd wrote

This is very confusing 😫. I thought the general consensus was employee Roth IRA. I had just changed it last night. Ok I’ll read that again later. Hopefully I won’t get more confused lol

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