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!

6 comments:

  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.

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  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.

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  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! :)

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

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