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I need to start putting money away for retirement. I was about to start contributing a percentage of my salary to my company's 401k plan. The lady in human resources told me that they contribute 3% to the 401k regardless of how much I put in. If that's the case should I just contribute to a Roth IRA instead?
Total annual income is around 54k, tax rate 25%, and filing single.
I understand while the 401k is pre-tax dollars I have to pay taxes on it when I take out that money. Not know how much those taxes will be in about 30-35 years, I'd like to put in my post-tax dollars in an IRA and not have to worry about the govt. taxing me although I'm sure I'll have to pay on what the company has put in my 401k.
Total annual income is around 54k, tax rate 25%, and filing single.
I understand while the 401k is pre-tax dollars I have to pay taxes on it when I take out that money. Not know how much those taxes will be in about 30-35 years, I'd like to put in my post-tax dollars in an IRA and not have to worry about the govt. taxing me although I'm sure I'll have to pay on what the company has put in my 401k.
Your max fed tax should be 6718.00 or 12.4% however ever dollar you put into an Ira or 401k pretax will save you 0.25
Employer matches are made on a pretax basis so that money will be taxable upon withdrawal
I need to start putting money away for retirement. I was about to start contributing a percentage of my salary to my company's 401k plan. The lady in human resources told me that they contribute 3% to the 401k regardless of how much I put in. If that's the case should I just contribute to a Roth IRA instead?
How much do you have to contribute to get the maximum company match? You should contribute at least that much before you consider doing a Roth IRA.
Sorry, I missed that. But do they put in more if the OP contributes more?
They do not. That is why I asking her this morning (the HR lady). She said regardless of what I put in they only put in 3%. She did say I could put up to 50% of my salary.
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