Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Weirdly enough, My employer (county govt) puts in 5% whether I participate or not. There is no match. I've never heard of such a thing. This is on top of what I am required to put into my separate pension plan which is 6%. Right now I'm part time so my annual income is projected to be less than $20k...
In past years when I did not have a 401k I maxed my IRA contributions in addition to my pension.
I didn't even know about the 17.5% max. That would be an awesome goal to strive for, and yes, I think I could do it.
It's not a 17.5% max, as the prior poster tried to clarify, but rather a $17,500 max (with an additional $5,500 allowed if you are 50 or older) that can be contributed pre-tax. Note that some employers may impose percentage limits on employee contributions that will result in maximums below these levels. For example, if your employer only allows pre-tax contributions up to 50% of salary and you earn $50K, your max possible for the year would be only $15K.
Employer matching contributions do NOT count against these maximums. The maximum amount that can be go into a 401K of combined employee AND employer contributions is $51,000 in 2013 (56,500 if you are 50 or older).
(Circular 230 Disclaimer - I may have no idea what I'm talking about, please consult with a real tax advisor, online information is worth what you're paying for it and relying on it won't help you if the IRS comes after you)
1. About $1.5k a year (4.5%)
2. Mid 30k
3. That'd be pretty close to 70% my net income for the year, so yeah.
4. Zero.
As background story, I am trying to pay off student loans, so I'm a bit tied down until that's done. Even after I am done paying, I'd rather pay into an IRA than the 401k. So jealous of everyone that can max their 401k. Something to strive towards to, for sure.
1. I max mine out, so $23K this year (standard plus catch-up)
2. More than enough to fund max 401K contributions
3. Not at all...wish the IRS would increase contribution limits
4. 5% of salary
Not even close. That would be fully 50% before taxes of my husband's income.
We contribute enough for the full company match, which is 100% on 4% of income. We do max out 2 Roth IRAs each year.
Are you sure that's best? Roth's are good for people who'll have high income in retirement, but wouldn't you be better off putting all of that into your 401k. You'd see immediate tax benefits. I would think if you took the money you put in a Roth and used it in your 401k then you could use the tax savings to, say, buy a Roth IRA.
Yes, I contribute the max that I can - 17.5k. I throw as much of my annual bonus (rec'd in the spring) at it as possible & max out as early in the year as I can. The company I works for gives a very generous 50% match on all contributions.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
