Suggested % to contribute to youy 401K? - Page 2 - TigerDroppings.com

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polizei11
LSU Fan
Lafayette
Member since May 2009
924 posts

re: Suggested % to contribute to youy 401K?


With company match, the limit is like $42K.

I contribute 2% and my company gives 8%. I contribute an additional 8% to bring my contribution to 10%.






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67655 posts

re: Suggested % to contribute to youy 401K?


quote:

i believe the limits 18% before taxes, and 75% after taxes. People under 50 have a lower limit then the over 50 crowd. Not for sure what the limits are.



It's 17,500 and over 50 is allowed to make catch up contributions of 5,500.

ETA: that's 2013



This post was edited on 1/2 at 8:54 pm


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TheTigerZone
LSU Fan
Moss Bluff ,La
Member since Dec 2009
2343 posts

re: Suggested % to contribute to youy 401K?


I'm at 6%





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Jwodie
LSU Fan
New Orleans
Member since Sep 2009
5627 posts

re: Suggested % to contribute to youy 401K?


My firm puts the equivalent of 5% of my salary into my 401k even if I put nothing in. I think that's pretty solid. I contribute an additional 7% on my own.





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CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
2417 posts

re: Suggested % to contribute to youy 401K?


quote:

Screw "typical". The correct answer is as much as you possibly can. And then a little extra.








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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
3225 posts

re: Suggested % to contribute to youy 401K?


At this point and here forward, I only contribute what it takes to get the company match. Additional savings go elsewhere.

There is no way I won't take advantage of the free money (company match), but the outside chance of government takeover of 401k's or other penalties for people who have saved and "can afford to spread it around" keeps me wary of contributing more.






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The Cable Guy
Iowa State Fan
Baton Rouge
Member since Aug 2004
9692 posts

re: Suggested % to contribute to youy 401K?


quote:

There is no way I won't take advantage of the free money (company match), but the outside chance of government takeover of 401k's .


I'm fairly abreast of things, but what is this about? Govt takeover that is.






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b-rab2
LSU Fan
Lafayette
Member since Dec 2005
9633 posts

re: Suggested % to contribute to youy 401K?


Sounds like me. company will match 6%. So thats what I put in, I max out my Roth IRA,and I fund another stock account and then I put the rest into savings





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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
3225 posts

re: Suggested % to contribute to youy 401K?


quote:

I'm fairly abreast of things, but what is this about? Govt takeover that is.
Nothing at the moment, but it would be an easy target to bolster social security funding. I'm just being cautious.






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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
537 posts

re: Suggested % to contribute to youy 401K?


quote:

At this point and here forward, I only contribute what it takes to get the company match. Additional savings go elsewhere. There is no way I won't take advantage of the free money (company match), but the outside chance of government takeover of 401k's or other penalties for people who have saved and "can afford to spread it around" keeps me wary of contributing more.


Besides the "conspiracy theory" sound to it, I just switched to this style of savings. Really no reason at all to contribute more to a 401k plan than what it takes to get the free money. I can put the additional savings into other plans with similar (or better) tax benefits, all with additional options and greater freedom if times get tough.

Some 401k plans, such as mine, allow you to take a penalty free loan, for a pretty low interest rate. This loan is simply backed by the 401k investment, so you don't lose any earnings. Don't think an IRA will do the same (pre-tax contribution).

And the $17,500 limit is only for pre-tax contributions to a 401k, correct? Any additional contributions can go toward an after-tax 401k (what's the point though unless just for match, right?).






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
67655 posts

re: Suggested % to contribute to youy 401K?


Yeah the limit is for pre tax





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polizei11
LSU Fan
Lafayette
Member since May 2009
924 posts

re: Suggested % to contribute to youy 401K?


The correct answer is:

1.) Contribute as much as your company matches in 401k.
2.) IRA
3.) Contribute to get to max pre-tax contribution for the year in 401k.
4.) Other avenues of investing






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guttata
LSU Fan
prairieville
Member since Feb 2006
20009 posts

re: Suggested % to contribute to youy 401K?


I put in $17k and the company matches 50%, so they just put a nice $8500 in the account yesterday. Free money!! Can't beat that.





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BestBanker
New Orleans Saints Fan
stuck in a moment
Member since Nov 2011
3060 posts

re: Suggested % to contribute to youy 401K?


Do you have adequate insurance on your assets?
Do you have 6-12 months of your gross annual income saved in a liquid accout?
What is your consumer-debt load?
Age?
Company match amount?

*Remember that any of your money that you deposit into a qualified retirement plan law account will be taxed at ordinary income tax levels to be determined at that point in time.






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rsande2
LSU Fan
Member since Jan 2006
3423 posts

re: Suggested % to contribute to youy 401K?


quote:

What is the "typical" percent you should try to contribute?


As others have said you surely want to take advantage of the company match.

Beyond that, other than the as much as possible line of thinking, I believe I read you take your salary now and multiply it by 20 and that should give you enough money for retirement.






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Hammond Tiger Fan
Arizona State Fan
Hammond
Member since Oct 2007
12160 posts

re: Suggested % to contribute to youy 401K?


I do 8% which is what the company matches. Until my kids graduate high school or college, I'm going to leave it as is. Once I'm finished taking care of them, I'll max it out.





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BigBoyTiger
LSU Fan
Chicago
Member since Aug 2005
8751 posts

re: Suggested % to contribute to youy 401K?


I'm at 17% for this year...





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TheWiz
LSU Fan
NOLA
Member since Aug 2007
7183 posts

re: Suggested % to contribute to youy 401K?


I'm upping mine from 10% to 15% in a week or two. Hopefully I'll have to make a big adjustment come raise time. I'm probably just being overly optimistic about recently getting my MBA.





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PlanoPrivateer
LSU Fan
Frisco, TX
Member since Jan 2004
1326 posts

re: Suggested % to contribute to youy 401K?


LINK
quote:

i believe the limits 18% before taxes,


My wife has been contributiong more than 20% of her gross for a few years so I know it is not capped at 18%. 18% may be a rule your plan has but not the government.

The above link will answer most of the questions I've seen in this post.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13686 posts

re: Suggested % to contribute to youy 401K?


I would do up to the match limit. Do a Roth as well as you can so you can diversify taxable and non-taxable retirement income.





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