HI,
I have a full time job that offers 401k but lately they told us they may reduce their matching contribution or even eliminate any matching. I also have a part time job and their 401k match is higher than my FT job. So my question is:
is good Idea to have an extra 401k on PT job? if so, can I join them together at later time? and If I can are there any penalties?
or should I put extra money on my FT job's 401k?
thank you in advanced.
Cesar
Hi. There is no problem having two 401ks, but understand that your limit for donations applies to the sum of your donations to all your 401ks... Absolutely contribute where you will get matching money. Get all the matching you can. Once you are getting all the matching money you have available, you should consider a ROTH if you are under the earnings cap for a ROTH. I would then fund a ROTH. If you can invest enough to get all your matching, and also fill your ROTH, then I would go back to the 401k, choosing the one with the lowest costs, fees, etc, and best choices. My 2 cents... Joe
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