> 401k accounts are FDIC insured up to $250k

No they aren’t. Possibly your specific 401k could have a cash fund at an FDIC insured bank, but that still wouldn’t be the 401k that is insured, it would be the bank.

SIPC insures brokers up to $500k, which would generally cover most 401k administrators.

You should note, however, that 401k assets do not belong to the administrator anyway, broker insolvency does not effect your 401k in any significant way. SIPC coverage only really comes in if the broker is pulling a Madoff, and stealing the money while pretending to invest it.

Run your own numbers and do a bit more research. Roth is good for some people it doesn’t always suck.

> 401k accounts are FDIC insured

No they're not. And a brokerage being insolvent wouldn't affect your assets. You own your shares of whatever you're invested in. If your brokerage failed, another one would take over.

The SIPC insures investment accounts - mostly uninvested cash, which you should have none of in a 401k.

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Thank you! Yeah I will have to look into that. I already lost a year of tax savings not knowing all these info.

401k accounts are not FDIC insured. They aren't bank accounts. Brokerages also aren't covered by FDIC.

Think this entirely depends on the profession. I do web development - when I was in the office all my working relationships were through digital messages/online meetings to team members across the country. It’s the exact same now that I permanently work from home.

But to piggy back on what you’re saying - things like tone of voice matter way more when the work is entirely digital. No one can see me, so how I sound is the major influence for how they’ll perceive me.

Your 4o1k is invested in different mutual funds likely, or one mutual fund, it depends on what you chose, the management company you employer contracts with to manage your account, is the holder of the certificate of investment in the mutual fund, if you wanted you could get physical copies of your shares in the mutual fund, you would have to pay every month because your share amount increases. The management company could go under but whoever takes it over still holds your deposit certificate.

Ya, I like reading about all the people complaining about rent increases and how it would be so much different if they owned a house and it wouldn't increase payments each year. Man, my house payments have skyrocketed faster then rent increases because of property taxes due to valuation increase and insurance increases. I'm shocked rent increases aren't higher tbh

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Super helpful, thank you!

Yes, but if you can afford to max a 401K and an IRA, make sure you meet the income limits for Roth IRA contributions.

You may find these links helpful:

• 401(k) Fund Selection Guide
• 401(k) FAQs
• "How to handle $"

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>Honestly I just like the idea of having a higher salary. But my work life balance and car is going to take a hit.

Is "work life balance" worth $18k each year to you?

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>My parents don't want me to move out.

Does the $60k salary allow you to move out? Do you want to move out?

Seems like you are young. Seems like a 42% increase would be worthwhile, particularly if it helps further your career. But it's an individual decision.

Devils Advocate here: remember the big push for $15/hr right before inflation took off? I remember the opposing side to that push saying the cost of living was going to increase due to such a large change to minimum wage. Here we are. Granted, a huge part of this is from printing money during COVID for unemployment(and people not returning to work….creating a huge labor shortage and massively unrealistic wages for unskilled labor) and the abuse of eviction moratoriums.

Oh wow! I always thought that Roth 401k was the best since you don't have to pay any taxes once you take the money out assuming it grew substantially. Thank you for letting me know!
So a better plan would be it seems to max out the traditional 401k, and then put 6k in the Roth IRA it seems, right?

Thank you! Trying sort of have tunnel vision at the moment haha

>Salary: 175,000
>
>Employer Match: 100% up to 9,000 annually

​

What was your prior salary?

Presumably, you were able to live on the prior amount, and you certainly should contribute 9,000 so you get the full match.

Consider contributing up to (175,000 - prior salary).

Thank you I will definitely look into this!

Just want to make sure I understand what you are saying about saving for down payment and investing in a 401k: first save for the down payment then invest what I can in my 401k?

And yea I have no clue what I want so i figured not worrying about money is a good place to start.

It’s different because housing value tends to increase in the US, so the property can be sold off and the loan satisfied if needed. In Japan, outside of central Tokyo and a few other locations, housing value goes down not up over time.

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A few things here, but ultimately I would take the 60k offer:

1. You're young and live at home? Have you lived away from your parents before? I think it would be socially beneficial to commute to an office and have socialization with other adults that are not childhood friends or family.

2. I lived at home for a time after graduating, and had a 30-45 minute commute home through the city. It was a nice buffer between work and home where I could decompress, blast some music or play podcasts, and just be by myself. I would also be more likely to go out or do some after work errands because I was already out and about.

3. An 18k increase in pay is pretty substantial at that level of income.

4. I feel WFH is always first on the chopping block for layoffs. It's much easier to avoid personal investment between employees and upper management when there's a screen between you guys under every interaction. I don't work in a volatile field like tech or something though. I never once worried for my job during COVID, but the nature of our work is best achieved with office time and requires travel with others at times.

5. You mentioned your parents don't want you moving out. I would urge you to look into the why of this. It's totally fine to live with your parents, but if they're holding you back from making progress in your career either for financial or protective parent reasons, it's time to reassess. You should put your career goals ahead of their wants.

Take the 60k job, go through with the commute, and if you hate it after a while, start looking for a new job. But getting the better salary, presumably better job title, and the different work experience will help you get better jobs later, ones that can offer a WFH and better salary.

I agree. For years I had an hour commute and then I switched to a 10 minute commute. There are still times when I miss the alone time in the car. I think a 25-30 min commute is the sweet spot.

These days I make my 10 minute drive and then the moment I walk in the door I leash up the dog and go for a 30 min walk.

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>Can I open a Roth IRA account on my own and contribute 6k/year if I enrolled in my employer's Roth 401k?

Yes, limits are separate.

>Am I correct in assuming that the $22,500 limit for 2023 applies to these 2 accounts combined?

Yes. Those 2 share the same limit.

>If so, then the Roth IRA with $6k limit is a separate entity and I can open one and contribute to that on my own?

Yes.

There are 2 splits on standard retirement accounts:

• Account type (401K, IRA being the most common, but a few other types do exist)

• Tax treatment (Roth vs Traditional)

The annual limits supply to the account type, not tax treatment.

>if I enrolled in my employer's Roth 401k?

Is that actually best for you?

• https://www.gocurrycracker.com/roth-sucks/

• http://wantfi.com/skip-the-roth-401k.html

• https://www.reddit.com/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/

• https://www.reddit.com/r/personalfinance/comments/z5hb8v/how_much_money_are_we_talking_about_losing_if_you/ixw89x5