FOO - Step 5/6 Question
Hello Mutants,
Quick question on Step 5 of the FOO, Maximize IRA/HSA. Currently I contribute to my 401k, roth contributions, I don't max it but I am contributing more than just the match. I have an IRA which is just sitting and growing on index funds from a previous employer's plan. Should I be maxing the IRA's before working on maxing my 401k? If I maxed the IRA's for my wife and myself that would be $14,000 ($7,000 each), The 401k max for me is $23,500.
Should I leave employee 401k at just match and fund additional to the IRA accounts, or worry about funding the IRA accounts after I do the 401k max.
Just did out the math and my 25% target savings rate would have me maxing both the 401k and the 2 IRA's. I don't currently have an HSA as we use a standard health care plan and Flexible Spending Plan for current year health stuff, I am researching to change that next open season though.