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re: Do you max your annual 401k contribution?
Posted on 8/27/21 at 12:21 pm to Bronson2017
Posted on 8/27/21 at 12:21 pm to Bronson2017
Invest so much it hurts
0
Posted on 8/27/21 at 12:59 pm to Larry Gooseman
quote:
What does this mean?
$19,500 is the amount that you can put in pre tax.
That plus what ever your employer puts in, let’s say $20,500 for easy math, equals $40,000.
The IRS limit for 2021 is $56,500, I think.
So you can then use post tax money to make up the $16,500 to max out your 401k.
More complex is you can then move the post tax 401k money to an Roth IRA to prevent future gains from being taxed.
And then depending on salary, back door your Roth.
Posted on 8/27/21 at 1:05 pm to Brobocop
Match my employer's 5%, put about half as much into crypto. With crypto defi revolution happening, maxing out the 401k doesn't seem like the prudent thing to do anymore.
Posted on 8/27/21 at 2:26 pm to Hulkklogan
Yes.
This post was edited on 8/27/21 at 2:28 pm
Posted on 8/27/21 at 2:38 pm to fjlee90
quote:
Pretty hefty company contribution of 10%.
Are y'all hiring?
Posted on 8/27/21 at 2:45 pm to Jor Jor The Dinosaur
quote:
she's in her second year of being 29 now
Posted on 8/27/21 at 3:49 pm to Brobocop
Started maxing mine at about 35 or 36, I certainly didn't invest enough in my 20's. That said, I wasn't making much either and was working for companies that typically didn't do any matching.
Currently working for a company that does a 7% match + additional kick-ins multiple times a year. Granted they are golden handcuffs, just like our annual shares, but I'll take what I can get.
The wife has been maxing her account out since she was about 26. She's almost 10 years younger than me and is much, much better shape that I was at her age. Then again, I'm the one that was pressing her not to piss all of her money away.
Currently working for a company that does a 7% match + additional kick-ins multiple times a year. Granted they are golden handcuffs, just like our annual shares, but I'll take what I can get.
The wife has been maxing her account out since she was about 26. She's almost 10 years younger than me and is much, much better shape that I was at her age. Then again, I'm the one that was pressing her not to piss all of her money away.
Posted on 8/27/21 at 9:17 pm to Brobocop
quote:yes , next question
Do you max your annual 401k contribution?
Posted on 8/27/21 at 11:01 pm to Brobocop
Wife and I both max our 457 and 403
Posted on 8/27/21 at 11:03 pm to Brobocop
In my 40s now and finally decided to be more fiscally responsible. Will max 401K and roth IRA this yr.
Posted on 8/27/21 at 11:33 pm to Brobocop
This will be my first year maxing at 27
Posted on 8/28/21 at 5:22 am to 21JumpStreet
quote:
use to until I found out about bitcoin
yea. locking your money away until your 60 in some scuffed usd account that you don't control that only makes 7% per year on average seems mind numbingly stupid
Posted on 8/28/21 at 10:06 am to Brobocop
Congrats OP. We've been bumping up incrementally and last year was the first time we maxed 401k/sep/hsa. Mid 30's. Feels good
Posted on 8/28/21 at 11:24 am to Brobocop
I max and front load my workplace retirement account since 30. We had a SIMPLE IRA when I started, but I convinced my partner to swap to a 401k for the increase in headspace (seems to be worth the increase in price. SIMPLE was free, but $6000/y + ability to match ourselves up to 20% or a max of $57,500 vs 3% max match made it way more enticing).
I started practice at 29. I started practice in August and was a little stupid at first- I paid into a deferred compensation plan from residency the first half of the year and put into a traditional IRA in December. but I skipped the SIMPLE because the cash flow wasn’t planned for particularly well (got married, “lost” jobs on 7/1, started in August (me) and September (her), and bought a house. Both of us joined partnerships and didn’t exactly have full panels of patients waiting for us with high salaries right off the bat).
It’s a pretty decent regret I have in my financial life. The S&P is up about 50% from the day I started work, and about 68% from December of that year (when I would have had the cash to max it but put ~1/3 in the traditional IRA instead). It’s not going to be the one thing that moves the needle for me long term. But it’s a sore spot that I know is there.
So I put 1/12 the max in each month the next year and then moved to putting the full amount in each January the year after.
I started practice at 29. I started practice in August and was a little stupid at first- I paid into a deferred compensation plan from residency the first half of the year and put into a traditional IRA in December. but I skipped the SIMPLE because the cash flow wasn’t planned for particularly well (got married, “lost” jobs on 7/1, started in August (me) and September (her), and bought a house. Both of us joined partnerships and didn’t exactly have full panels of patients waiting for us with high salaries right off the bat).
It’s a pretty decent regret I have in my financial life. The S&P is up about 50% from the day I started work, and about 68% from December of that year (when I would have had the cash to max it but put ~1/3 in the traditional IRA instead). It’s not going to be the one thing that moves the needle for me long term. But it’s a sore spot that I know is there.
So I put 1/12 the max in each month the next year and then moved to putting the full amount in each January the year after.
Posted on 8/28/21 at 6:39 pm to Brobocop
I will barely miss the max this year. I will max it out next year. Congrats on maxing out this year!
Posted on 8/29/21 at 7:08 am to Brobocop
Yes. I have been maxing for about 15 years. The problem I have is that the majority of that time was without any match by my employer. I switched jobs 5 years ago and now I am at the max EE/ER contribution limit. My plan is to work maybe another 15 years at this place.
Posted on 8/29/21 at 9:46 am to Brobocop
29. Single earner w/ 2 kids. I do 10% of salary and 20% of bonuses. This year will be as close as I’ll get at around $15k. I do max a Roth IRA.
This post was edited on 8/29/21 at 9:47 am
Posted on 8/29/21 at 10:13 am to Brobocop
I used to but now I only contribute to get the company match. I probably hit max contribution in my early 30s.
Posted on 8/31/21 at 11:15 am to Brobocop
Yes. All in Roth 401k also.
This post was edited on 8/31/21 at 11:16 am
Posted on 8/31/21 at 12:48 pm to Brobocop
quote:
Do you max your annual 401k contribution?
I wish I could. I'm also 32, got a bit of a late start to retirement planning. I put 12% of every paycheck into my 401K and it doesn't feel like nearly enough.
Then again, I also know two people in their 40s who make good money but spend every damn dime they get and have nothing for savings.
This post was edited on 8/31/21 at 12:50 pm
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