Fezmid Posted November 17, 2004 Posted November 17, 2004 Since the penny-thread seems to be changing, I figured I'd make a separate topic for this: http://205.134.161.85/forums/index.php?showtopic=10157 I put 17% in my 401(k). My company matches 4% and gives me an annual 3% bonus every year. In essence, 24% of my salary goes into my 401(k). I'm 29 and have been contributing for 5 years. (started at 10% year 1, 15% years 2-4, 17% year 5). CW
stevestojan Posted November 17, 2004 Posted November 17, 2004 Since the penny-thread seems to be changing, I figured I'd make a separate topic for this: http://205.134.161.85/forums/index.php?showtopic=10157 I put 17% in my 401(k). My company matches 4% and gives me an annual 3% bonus every year. In essence, 24% of my salary goes into my 401(k). I'm 29 and have been contributing for 5 years. (started at 10% year 1, 15% years 2-4, 17% year 5). CW 121731[/snapback] 6% because that's what the company matches 100% of. Should do more, but I'll wait till i start getting paid more
mead107 Posted November 17, 2004 Posted November 17, 2004 13 % , problem is I like to spend money ,hope my kids can take care of the wife and I for the last 20 years like we took care of them for the first 20
Rico Posted November 17, 2004 Posted November 17, 2004 15%, company matches 6%, + 7% bonus (+ or - % points, depending on year-end results). Starting next year, I can contribute up to 25%, haven't decided whether or not to increase.
JimBob2232 Posted November 17, 2004 Posted November 17, 2004 Remember, I dont know how much you make, but there is a cash dollar amount as to how much you can put in. Be careful. If you max out your contribution in october, your contributions will stop, as will your employer matching contributions. The max was 11,500 of YOUR contributions, but I know it has gone up. Im guessing its somewhere in the 14000 range now.
taterhill Posted November 17, 2004 Posted November 17, 2004 Fez...consider a Roth IRA..after tax dollars, but tax free dist'n come retirement time..this will give you a tax free nest egg, which may come in handy if you are approaching a higher tax bracket when you are taking a dist'n off of your taxable 401(k)....
Guest Guest Posted November 17, 2004 Posted November 17, 2004 Remember, I dont know how much you make, but there is a cash dollar amount as to how much you can put in. Be careful. If you max out your contribution in october, your contributions will stop, as will your employer matching contributions. The max was 11,500 of YOUR contributions, but I know it has gone up. Im guessing its somewhere in the 14000 range now. 121749[/snapback] it's 14,400 right now going up in big increments to 16k and 18k over next 2 years. None of you guys deserve the matching money anyway....you clearly aren't wroking hard enough for it
aussiew Posted November 17, 2004 Posted November 17, 2004 5% and the company matches 100%. I'd put in more but I have to pay for direcTV and trips from Dallas to Bills games.
JimBob2232 Posted November 17, 2004 Posted November 17, 2004 I have to pay for direcTV and trips from Dallas to Bills games. biggrin.gif Yeah...that was money well spent.... /still bitter about sunday night
BillsFanNC Posted November 17, 2004 Posted November 17, 2004 Good topic, we just had a seminar here about this yesterday. Our 401k plan is administered by AYCO who also do so for the majority of fortune 1000 companies. Some interesting points he made. Only about 70% of people even participate in 401k plans. I found that amazing. The company is offering free money to people through the match and they turn it down. I can't remember the exact numbers but companies are dropping pension plans at an amazing rate. I think 5 years ago it was in the 70% range of fortune 1000 companies offering a pension plan and now it is something like 25-30%. A good rule of thumb they suggested for younger people was to start out at the minimum of the company match and then just increase your contribution 1% a year when you get your annual salary adjustment. I contribute 9% and get a 3% match someone else mentioned the limits. It's $13k for 2004 and $14 k for 2005. There are also "catch-up" provisions if you are over 50.
Rico Posted November 17, 2004 Posted November 17, 2004 omeone else mentioned the limits. It's $13k for 2004 and $14 k for 2005. 121808[/snapback] I'm with a Fortune 125 company & the limits they set are by %, not by $... no mention of $ limits at all. After working the math, I'm contributing more than $13K. How can this be? (Don't tell the IRS )
stuckincincy Posted November 17, 2004 Posted November 17, 2004 (Don't tell the IRS ) 121838[/snapback] You realize, of course, that the IRS still pays a bounty for turning people in...
JimBob2232 Posted November 17, 2004 Posted November 17, 2004 I'm with a Fortune 125 company & the limits they set are by %, not by $... no mention of $ limits at all. After working the math, I'm contributing more than $13K. How can this be? (Don't tell the IRS w00t.gif ) The company will often limit the percentage. But the IRS limits the maximum dollar amount. Once you hit the 14k (or whatever it is this year), your contrubutions will stop, as will your employers. This could cost you alot of money in matching contributions you will not get. Remember the limit is on how much YOU put in. Do not include the amount your employer pays in this calculation.
JimBob2232 Posted November 17, 2004 Posted November 17, 2004 You realize, of course, that the IRS still pays a bounty for turning people in... biggrin.gif Hmm...if only i had more info to provide the IRS than "some guy named Rico on TBD."
Rico Posted November 17, 2004 Posted November 17, 2004 You realize, of course, that the IRS still pays a bounty for turning people in... 121870[/snapback]
Rico Posted November 17, 2004 Posted November 17, 2004 Hmm...if only i had more info to provide the IRS than "some guy named Rico on TBD." 121894[/snapback]
Alaska Darin Posted November 17, 2004 Posted November 17, 2004 The maximum amount you can contribute each year to all 401k plans in which you participate is the lower of: (1) the maximum percentage of your salary that's allowed under each of your employer's plans, or (2) the dollar limits shown below. For example, if your employer's 401k plan allows you to contribute 10% of your salary, and you earn $50,000, your maximum limit is $5,000, not the $13,000 limit in 2004 that applies only to higher-paid employees. Maximum Limits 2004 . . . $13,000 2005 . . . $14,000 2006 . . . $15,000 To those of you not contributing, please rethink your decision NOW. You are frittering away the end years of your compounding interest, which could cost you hundreds of thousands of dollars against a $150 a month now. You simply can't afford not to invest as much as you can while you are young. If anyone has questions, PM me.
Crows57 Posted November 17, 2004 Posted November 17, 2004 I get 6% matched so that's what I do. The most ideal way to maximize your savings is to put all of what your company matches in a 401K (since you are getting a 100% return on that), and then put the maximum amount in a Roth IRA account. The Roth money will be tax free when you withdraw it (although it's aftertax money when it goes in).
Guest Guest_macdaddy_* Posted November 17, 2004 Posted November 17, 2004 Fez...consider a Roth IRA..after tax dollars, but tax free dist'n come retirement time..this will give you a tax free nest egg, which may come in handy if you are approaching a higher tax bracket when you are taking a dist'n off of your taxable 401(k).... 121759[/snapback] I respectfully disagree. Conventional wisdom states that you maximize your 401k contributions before any IRA contribution. You are investing any matching money plus the pre tax savings based on your tax bracket. A 40 year old has 30 years to make that 'free money' work for them. As Billy says...THATS HUUUUUGE
KD in CA Posted November 17, 2004 Posted November 17, 2004 Fez...consider a Roth IRA..after tax dollars, but tax free dist'n come retirement time..this will give you a tax free nest egg, which may come in handy if you are approaching a higher tax bracket when you are taking a dist'n off of your taxable 401(k).... 121759[/snapback] The Roth IRA is a fantastic deal. Anyone who is within the income limits should have one, no question about it.
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