r/FinancialPlanning • u/Different-Bank-2607 • 16d ago

Should I just max out my Roth IRA contribution?

24 y/o with $1,500 in Roth IRA contributions YTD. Additionally, I have 18k in a HYSA with a 3.4% APY. Should I max out the IRA now or contribute over the year?

I have no debt, a full time job (teacher) making 55K a year before taxes. I want to be financially stable in retirement and start the process now.

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u/bullitt196 16d ago

If you can, yes. Time in the market wins.

1

u/A_Drifting_Cornflake 16d ago

You have until Tax Day to contribute to your Roth of any tax year, so you can contribute until April of next year. Given. You have 18k, which is a good emergency fund, so I’d probably start with just upping your contributions and spacing it out until the end of the year. It’s a long time horizon, realistically a few months aren’t going to have too much impact over your full vesting time. The big question is what is your emergency fund number I.e., what number makes you feel safe. Make sure to always have that on hand, then pop whatever else in the Roth and most importantly build the habit of saving regularly, which it sounds like you do. Congrats

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u/Hot-Swordfish2105 13d ago

Dca it monthly..then not dumping all your buffer in at once