My apologies if two of the same replies appear. I posted a reply using the other "post reply" button and I have no idea where my message went. Maybe it takes a little while to appear or it went some other thread?
Sweeps, thanks for responding.
My thinking is that the extra that I would get from adjusting withholdings would balance me increasing 401k contribution. So no it is not money to be wasted.
I used this calculator to get an idea of these adjustments in relation to take home pay:
finance.cch.com/sohoApplets/Payroll.asp
Company matches >100% so that is why I am eager to jump from 3 to 6% and even considering to 8% this year. Again, the calculator above helped me get an idea of how take home would change. Also, I would feel better if I knew changing allowance to 2 is ok (If I owed back taxes it wouldn't be more than my refund from last year, right? No major life changes except for the EF in savings. Changing allowance to 2 would make me feel comfortable about inc. 401k contributions from 3% to 8%.
The Roth IRA shouldn't be opened until I max 401k, right? But what if I took a baby step and only inc. 401k to 6% (max is 8) for this year and find myself with extra in paycheck for savings. Should I proceed with opening the RothIRA anyways?
Thanks!
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