Tuesday, February 9, 2010

Two surprising things at work

First of all, I just discovered that I have a Roth 401(k) option within my company retirement plan. I never knew that! I don't know if I'll be taking advantage of it this year--I'm already maxing out a Roth IRA and contributing 5% of my pre-tax income. If, towards the end of the year, I seem to have some extra cash, I'll contribute. It's something I should really consider, since I believe the company match applies to any money I contribute to the Roth 401(k) post-tax, which is basically free money. Something to think about!

Second, I got a bonus yesterday! Completely unexpected--book publishing has taken a big hit in this economy and my company is no exception, and I didn't think they'd be giving out bonuses this year. Also, I was only in my division for three months of last year. It's a small bonus but much appreciated. I'm just going to stash whatever's left after taxes in savings. Woo!


  1. Congrats on the bonus!

    When I used to have a Roth 401K, the company match went into my regular 401K. My old company only matched a small amount, but I think it was based on gross income. In that case, it didn't matter whether you contributed to a Roth 401k or a regular 401K.

  2. Congrats on the bonus.

    I've heard the Roth 401K is the best of both worlds. If you aren't completely strapped for cash, I say apply your bonus to the Roth 401K. Have 3 streams for retirement income is going to make you one happy granny one day! LOL.

  3. Take the free money! We don't have that option as my husband is self employed, but I would sure love to squirrel away money and have someone else match it! :)

  4. yeah definitely take the Roth option at work, free money is free money. congrats on your windfall too!


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