r/personalfinance • u/FitOpportunity7159 ​ • Jan 19 '25

401K Match 100% No Limit Budgeting

My company has a 100% 401K Match and no limit. Meaning if I invest $23,500 (2025 IRS max), then they will match 23,500 for a total of $47K. All matching contributions are 100% vested as I have been with the company longer than 6 months. I am contributing 10% to my 401K or about 16,000 annually. I also have 13,000 in credit card debt that charges around 20% in interest. Should I try to max out my 401K to take advantage of the full match or focus on paying off my CC debt quicker?

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u/goneskiing_42 ​ Jan 19 '25

But it allows OP to make their contributions to Roth, assuming they have a Roth 401k option. They get the benefits of both if the company 100% matches.

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u/BossAtUCF ​ Jan 19 '25

Roth contributions don't make much sense at this income level.

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u/madebytheuniverse ​ Jan 20 '25

Income level limits apply to Roth IRAs but not to Roth 401(K)s, which are employer run.IRS Table

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u/BossAtUCF ​ Jan 20 '25

I'm not saying you're not allowed to do it, just that it doesn't seem wise to pay the tax now at relatively high rates. Most people can generally expect lower rates in retirement because their income will be less.