What % of your salary do you contribute to your 401(k)?

CFA General
#1

?

#2

I max out my contributions every year. The amount is not significant now but if I did the math right could add up to a few mil by the time I retire.

#3

max for matching.

#4

$15,500/income

#5

30%

#6

I just finished my ugrad and will start working soon. I was thinking ~25%

#7

…other end of the spectrum here: $0…or to answer your question more correctly: 0%

#8

^ why?

#9

10%

#10

me too. 0 I am saving for a condo soon. I need my money liquid. Also, I don’t get an employer match for like another year or so.

#11

max out

#12

topher Wrote: ------------------------------------------------------- > me too. 0 > > I am saving for a condo soon. I need my money > liquid. Also, I don’t get an employer match for > like another year or so. topher, If this is your first home then you could contribute, get your employer match and then take advantage of the first time home buyer exemption for the withdrawl from the plan when needed for the down payment. If not you are leaving some cash on the table. I can’t think of a downside, but I may be missing something.

#13

isn’t the exemption like 10,000? In LA, this will not cover a down payment.

#14

0 because this mickey mouse outfit I work for won’t give us one. I was furious earlier this year when I found out I owed the IRS. “Why?” My manager asks? “Because I can’t sock away pretax income with a 401k!” Yet another reason the grass is looking greener…

#15

Not sure. I will look it up.

#16

I get at least my employer match and then contribute some extra. I try to max or get somewhere close.

#17

You are right it is a $10,000 limit. Even so, if you employer matches 5% you would be leaving $500 on the table… Might not be worth the effort though.

#18

Thankfully, they got rid of our pension last year and matched more in our 401K, and we can immediately sell the company stock they match it with :-). I would like to know where my money is at all times and how much there is. I know some disagree with the end of pensions but they don’t seem to be living up to their reputation nowadays for retirees.

#19

"If this is your first home then you could contribute, get your employer match and then take advantage of the first time home buyer exemption for the withdrawl from the plan when needed for the down payment. " "You are right it is a $10,000 limit. " --The exemption is from the 10% penalty. You still get hit with ordinary income tax. This exemption is NOT available in a 401k. Only in IRAs. If you take a withdrawal from a 401k for a 1st time home, you have to pay the 10% early withdrawal penalty. You could roll the money from a 401k to an IRA then pull it out for a house. But not directly out of a 401k. Some plans allow for “loans.”

#20

so amber, did your pension vest immediatly? they match with stock - haven’t heard of that one? that is crazy to encourage lack of diversifiaction in a retirement account.