Advertisement
retirement

Fund your 401(k) or IRA first?

Retirement » Fund Your 401(k) Or IRA First?

How much do you want to save?
How much do you want to save?

"In favor of a 401(k), you can put a lot more away," says Karen Altfest, CFP, principal adviser and executive vice president of client relations for Altfest Personal Wealth Management, a fee-only financial planning firm based in New York City.

With a 401(k), you can save up to $17,500 in 2014. And you can go up to $23,000 if you're 50 or older. With an IRA this year, you can save up to $5,500, or $6,500 if you're 50 or older.

"So if you've got that money to put away, you're going to be able to put away a lot more," in a 401(k), says Altfest.

If you've already maxed out your 401(k) and still have income to save, "you might want to consider whether a traditional or Roth IRA might be right for you," she says.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
9 myths about IRAs
REFINANCE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed refi 3.84%  0.03 3.81%
15 year fixed refi 3.01%  0.05 2.96%
10 year fixed refi 3.15% --0.00 3.15%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.76% --0.00 4.76%
50K FICO-based HELOC 4.04% --0.00 4.04%
100K FICO-based HELOC 3.85%  0.01 3.84%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.92%  0.07 2.99%
48 month used car loan 2.79% --0.00 2.79%
60 month new car loan 3.04%  0.02 3.02%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 1.06% --0.00 1.06%
2 Year CD 1.18% --0.00 1.18%
5 Year CD 1.80%  0.03 1.83%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.88% --0.00 15.88%
Cash Back Cards 16.43% --0.00 16.43%
Low Interest Cards 11.12% --0.00 11.12%
 
Next
advertisement
Partner Center
advertisement

Connect with us