Hello everyone,
So my employer offers both a 401k and a 401a. I’m contributing 10% to my 401k and my employer contributes 2.5% of my base salary each pay period towards my 401a. There’s an option to contribute to my 401a as well but with only after tax dollars. Is there any incentive for doing so? I already have a traditional rollover IRA (make too much for a Roth) that I contribute to as well in addition to a simple 3 ETF portfolio (60% US Stocks/30 % International Stocks/10% Bonds) with Betterment so wasn’t sure if the money would be better to allocate elsewhere. Thank you so much!
Hi Alejandro!
I would only contribute to your 401a too if you are already maxing out your 401k. If you have not maxed out your 401k, then there is no need to also contribute to your 401a.
I hope this helps!
Thank you so much! That’s what I ended up doing after all.