- Benefits of contributing to a 401k and a Roth IRA while you are eligible during residency:
- Tax Savings
- Roth IRA eligibility (It may be one of the last times you could meet the requirements to invest in a Roth IRA)
- Compound interest
- Stock market returns
- Not playing Catch up
- Reasons not to contribute to a 401k or a Roth IRA while you are eligible during residency:
- Accelerate debt payoff
- The need for liquid cash
- No employer contributions
- Some people withdraw money early and pay a penalty
- Attack your student loan debt more aggressively after graduation and take advantage of the tax benefits of a 401k and a Roth IRA while you are eligible during residency.
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Disclaimer: The topic presented in this article is provided as general information and for educational purposes. It is not a substitute for professional advice. Accordingly, before taking action, consult with your team of professionals.