talk about legitimate ways of sheltering money

[glatt]

I'm funding my 401K enough to get the full match, plus an additional couple percent. Are you saying it's better to put that additional couple percent into a Roth instead?

edit: I acknowledge receipt of all the disclaimers, etc.

[lookout123]

Originally Posted by glatt

I'm funding my 401K enough to get the full match, plus an additional couple percent. Are you saying it's better to put that additional couple percent into a Roth instead?

edit: I acknowledge receipt of all the disclaimers, etc.

the questions you need to ask yourself are:
1) Do I really need the tax deduction on a couple thousand this year, or would i rather have that money grow tax-freeeee forever more?
2) Do you have better (more) investment choices available to you inside of your 401K or in your Roth?
3) Do you like having the money unreachable in your 401K or would it be comforting to know you could get at it penalty free in case of an emergency.

I can't give you the answer, but those are the questions I would ask you if we were speaking privately.

[lookout123]

also you should consider any of the 'custodial fees', expense ratios, backend loads, etc. that may apply.

Those will most likely be the same regardless of account type as those are related to the investments themselves, not so much the type of accounts.

[barefoot serpent]

Originally Posted by lookout123

Those will most likely be the same regardless of account type as those are related to the investments themselves, not so much the type of accounts.

But aren't some fees waived for institutional investors (401Ks) vs. an individual account?

[lookout123]

not generally.

annual fees per account are charged regardless - more generous companies just pay it for their employees. Otherwise the standard is $40/year.

commissions/transaction costs - most 401k's are full of no load funds, so that would be the same. Other choices are A/B/C sh, each has pro's and cons.