401k through VOYA. Meh

Investing
#1

My employer offers their 401k through VOYA, and the funds available are pretty lackluster with crappy fees (thankfully they at least match up to 4%). I’ve heard of being able to invest in other funds like fidelity or vanguard through VOYA (outside of what your employer offers), but haven’t dug into this much. Any idea if this is possible? Or would it make sense to invest up to match in the one good fund they have in there (us total stock index fund - ishares) and then the rest in a Roth IRA with the international and bonds to complete the 3 fund portfolio? I can max out the 401k but with the current options available I’m hesitant.

Bonus question; Is the ROTH max $20,500 in your employee sponsored 401k, but only $6,000 in a non sponsored ROTH IRA? Or is it $6k in both? Thank you PFC community!

#2

Hi @sgman!

Voya is the benefit administrator for your 401k. They make funds from different companies available for you to invest in (like the iShares fund you mentioned).

It sounds like you’re following the checklist below, which is great. Once you invest up until the match and max out a Roth IRA, if you are able to contribute more, maxing out the 401k using a low cost index fund, such as the iShares Total Stock Index Fund, seems like a great option.

To answer your bonus question, assuming you’re below the income limits for a Roth IRA, you can max out both a Roth 401k and a Roth IRA ($26,500 in total between the two).

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