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The 401(k) dilemma

December 16th, 2009 at 03:13 pm

I like 401(k)s. They reduce the tax you need to pay, they help you save more than you could in an IRA and sometimes you even get matching funds.

Hubby is getting access to one through his temp agency. So what's the problem? Its through the temp agency. Technically hubby is supposed to get hired on by the company he is currently working for so he might get it started and then have to transfer the money because he got hired.

The other issue? Contributing will delay the debt payoff by two months.

That said, I am still leaning towards having him do 15% to the 401(k). If he doesn't get hired by the company he is working for, this will keep our access to a 401(k) so that we can squirrel away money. I hate delaying the payoff but its better to establish good habits now then to wait for a better time later (which may never come).

I will just have to make sure to fully fund my roth by the end of next year (which should be doable despite the setback).

Posted in Budget Info | 3 Comments »

3 Responses to “The 401(k) dilemma”

  1. creditcardfree Says:
    December 16th, 2009 at 03:21 pm 1260976896
    1260976896

    Yes, do it. I think a delay of two months is minimal in comparison to months and years that 401K money will be invested. Smart, in my opinion.

  2. Broken Arrow Says:
    December 16th, 2009 at 03:44 pm 1260978287
    1260978287

    Is there employer match? If not, it might be better to do your own IRA. Traditional is tax deductible.

  3. Caoineag Says:
    December 16th, 2009 at 03:48 pm 1260978480
    1260978480

    You can put more into a 401(k) and I plan on doing a roth ira for hubby in addition to the 401(k). No match though Frown The Roth will have to wait till January 2011 though with everything we have going on.

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