Best of luck
Hi. I work in a company that offers 2 types of TSA : Traditional and Roth 401k retirement plan. The company doesn't match. maximum contribution is $17,500 a year. Now I don't have an option for early withdrawal, unless I have to prove a hardship, where I'm going to be penalized with 10% plus tax.(even I can't withdraw my principal).
I searched online for IRAs and I found that Roth (or traditional) you can withdraw my money anytime, don't have to prove hardship where still I'm going to get penalized and pay tax (on the earnings only in the case of Roth) but still, I have access to my money anytime. Max yearly contribution is $5500.
I don't know about the yield interest average for both which is higher
It's true that in the first case (401K) I can borrow money for it, and payback with variable interest.
From the 2 examples above I feel that IRA is better because there is an option to withdraw anytime (although with penalty and tax, rather than no option at all)
The bottom line is that I'm looking for an option instead leaving my money in my checking account, I'd put a saving/retirement account where if I needed it for any reason, not necessarily hardship, I can withdraw it, and I would be still gaining money
Can you please advise with option is better.
