Roth or 401k and Debt

Debt
#1

Hi Finance Community

I have a questions and would like your feedback please. I am currently starting a new position and they have a 401k option to either put money in a Roth 401k or Regular 401k or Split the contributions. I also have 8k in Credit Card debt due to unforeseen circumstance , I have aggressively paid the debt down from 12k to 8k in 4 months but do you guys think I should invest in my 401k or wait until I get the debt to 0 and then start investing in the 401k. Also do you think I should split the contributions or invest in the Roth fully. Also my job matches up to 5% after working there for a year so I wont be getting matched immediately

Thank you

#2

Welcome @knesmith!

I’d go nuts on your debt until the match starts. Then prioritize the 401k just up to the match and keep going nuts on the debt.

So you won’t be starting your 401k right away, but when you do, I’m generally on team Roth. They’re both good options though!

Here’s the reasoning on how to prioritize your money:

3 Likes
#3

Thanks for the response Jeremy I appreciate it