6%, which is the maximum the company matches. I’m old enough to take money out. And, since I’ll be retiring soon and will need to take money out, I also save lots of post-tax money, since I can mix spending money which I won’t pay tax on with money that I do.
Looking at my account makes me real glad I’ve save so much for so long.
Enough to max out my 18K/year (figures out to be about 25%).
I have a question that I can’t quite figure out: Can I also put $5500/year into an IRA on top of the $18K/year that goes into my 401k? Or, is the $18k/year a cap for both the IRA and 401k?
20%+? Y’all rich.
I don’t remember how much I add. Like 7% or something. I do the match plus an extra percent or two for good luck.
They are separate limits. You can do both. Plus catch-up contributions to both if you’re old enough.
Thanks. My company said it was a total of $18K for both and the voluntary reduction form only allows $18K total (I trust them about 0.5% and trust internet strangers far more :D. I’ve read conflicting things online. I think I’ll do my IRA with a different company (Vanguard most likely).
Double check about the IRA - it’s my understanding that you can only have a tax-deductible IRA if you don’t have a 401k. I think a Roth IRA is after-tax, so you can have them, and you’ll only, eventually, be taxed on the earnings, not the principle.
I want an after-tax IRA since my 401 is all pre-tax. All my 401 income once I retire will be taxable so I’d like to get some non-taxable income as well.
More research required.
Percentage-wise, I don’t know. But I contribute the legal maximum every year–$18k these days–and my employer pitches in another 10% of my salary.
There are income limits on both types of IRA.
For a deductible IRA: if you are covered by a plan at work, you can still make contributions with AGI of up 116,00 (MFJ) or 70,000 (Single/HOH).
For a Roth IRA: it doesn’t matter whether you are covered by a plan at work. You can make contributions with AGI up to 191,000 (MFJ) or 129,000 (Single/HOH).
And you can always make nondeductible IRA contributions at any income level. In some scenarios, you can even roll these over into a Roth (a “back door Roth”), but this is messier than a lot of online guides would suggest.
These are 2014 limits. There are reduced contribution maximums that kick in before contributions are blocked entirely. Make sure to consult your tax professional. Etc.
On another note: many companies are now offering Roth 401k options. You can even participate in the traditional 401k and the Roth 401k at the same time. (For example, 50% to each). It’s up to your employer whether this option is available.
10%. My employer matches 50 cents on the dollar for the first 6% of salary contributed, for another 3% (but they don’t match on an ongoing basis–it’s a fully vested lump sum, distributed in the Spring for the previous year’s contribution, if you were employed on 15 December).
I don’t reach the annual max, but I have one kid in college and another starting next year, so expenses are projected to be a bit high for the next 5 years. My wife is a public school teacher, so will have a fairly generous pension.
As a government employee with a pension plan there is no 401k available. Like someone upstream I have a 457k which means no matching funds. I can’t afford to put too much in since I have to contribute 10% of my salary to the pension. With taxes and all the mandatory deductions my pay is already cut in half.