Contribute to taxable account or Paychex 401k?

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nsnadell
Posts: 1
Joined: Tue Jan 17, 2012 2:32 pm

Contribute to taxable account or Paychex 401k?

Post by nsnadell » Tue Jun 12, 2018 7:41 pm

I'm trying to get my financial life together and am looking for 401k advice.
I'm currently maxing out my wife's and my Roth IRAs and contribuing 4% to my 401k. My employer matches 100% up to 4%. I'll admit when I picked my 401k funds, I wasn't very knowledgeable and haven't paid much attention to it.

I've read several of the wiki pages and understand that sometimes it is better to contribute to the 401k rather than taxable accounts. Everything (other than the 401k) is in Vanguard. The 401k is with Paychex. I'm looking to save another 5% every month and wondering if I should up my 401k contribution or put it into my Vanguard brokerage account?

Here's more info, and please let me know what else you want to know....

Here's the fees and list of funds available to me in my 401k:
https://monosnap.com/file/luKhhdAajCe8b ... NBl6pCu5zt

Looks like Paychex taking these fees every month:
https://monosnap.com/file/EV2Zy65b1UC8Z ... C3HoQhQzgn
https://monosnap.com/file/WEXBfO0gOtmIw ... bZm7LKPZUw

Thanks in advance for any advice.....

KSActuary
Posts: 379
Joined: Fri Jan 13, 2012 10:53 pm

Re: Contribute to taxable account or Paychex 401k?

Post by KSActuary » Tue Jun 12, 2018 8:24 pm

This is a typical PayChex 401k plan that was sold with all of the bells and whistles including 3(38) and 3(16) ERISA fiduciary services. The expenses for the funds are relatively low since you are paying the asset-based fees on a stand alone basis which may total 50 -60 bps (depends on plan size). If you want to put significant monies into a Roth 401k then add to the PayChex plan.

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FiveK
Posts: 5409
Joined: Sun Mar 16, 2014 2:43 pm

Re: Contribute to taxable account or Paychex 401k?

Post by FiveK » Tue Jun 12, 2018 10:44 pm


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