If I contribute to a 401K to
get the employer matching funds, how long do I have to wait to take distributions?
Not exact matches
Having a full emergency
fund and contributing enough to
get your full
employer match is something to be proud of.
There's one caveat: If your
employer offers a 401 (k)
match, Thrasher recommended
funding it to
get the
employer match and then using a Roth IRA after.
If you aren't
getting matching funds from your
employer and aren't impressed with what you see in the 401k, try opening an IRA instead.
Also, if an
employer is offering
matching contributions, that trumps almost anything that could be said about taxes —
get those
matching funds.
@Michael — At my old job, I had an
employer matching RRSP, but we had to invest with HSBC mutual
funds to
get the
match.
I have a
funded pension account and 401K contributions through my
employer (with
matching funds), but we want to
get a Roth going as well.
If you're already saving enough in your 401k to
get the full
matching contribution offered by your
employer — or if your
employer doesn't offer a workplace retirement account — use your bonus to
fund a Roth IRA.
Maybe you're in a new job and are
getting matching funds from your
employer.