#1 Gunner Wrote: ------------------------------------------------------- > "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.” If he isn’t contributing he is getting hit with ordinary income tax anyway (by way of taxes on his paycheck), so this is a wash. He doesn’t need a loan to make it work.
6%. Need to do more.
22% currently
6%. just changed to 8% for down market. i’m probably leaving soon so i probably won’t benefit that much from the match.
0% … because we don’t have a 401k My employer wants me to recommend a qualified plan for the company. Does anyone have any thoughts on what would be best? I am thinking a SEP or a SIMPLE. We only have five employees.
For every client that calls hitting the panic button to go to all cash, I’m going to up my 401k contribution by 1%.
Getting Out Wrote: ------------------------------------------------------- > 0% … because we don’t have a 401k > > My employer wants me to recommend a qualified plan > for the company. Does anyone have any thoughts on > what would be best? I am thinking a SEP or a > SIMPLE. We only have five employees. Those will work well (and will be the least costly from an adminstrative view), but will not benefit the owners the most. 401(k) safe harbor plan integrated with social security might work well.
Between contributions and matching with me and my wife combined, we’re taking down around $45,000 a year before any investment gains/losses. It would be nice to get our hands on that money and blow it on something crazy every year but 30 years from now it will hopefully be a sweet stash.
Anyone taking advantage of the Roth 401k?
That’s where you contribute on an after-tax basis? Thought about it but I really don’t want to pay more in taxes now than I have to. I guess it’s more psychological than anything.
the Roth is really great too, especially for us young guns who are not rolling in the dough quite yet and not in too high a tax bracket, +, theoretically, our $ will be *growing* for a long time, so at distribution a higher percentage of the $$ will be gains that are never taxed. I think if you expect to retire in a higher bracket than you are in now its a great idea- you basically pay tax on what you invest now at your current rate, and never give a penny to the man again. If you plan on leaving a little legacy after you die, it has additional benefits bc it can be transfered tax free and continue to grow tax free. It is a really great tool for the right situations.
Agreed akanska. I only contribute the match and put extra money into a roth.
max it, 50%. If you’re company matches, nothing like a 100% return, especially in this market.
I meant 5%
A new way of retirement investing includes tax diversification. Place as much as you can in the 401k and also put some in a Roth thereby taking advantage of all available tax breaks.
3% becuase i only have few funds to invest in and i do not like it, but planning to open a Roth IRA and put most of my saving in it.
XSellSide Wrote: ------------------------------------------------------- > For every client that calls hitting the panic > button to go to all cash, I’m going to up my 401k > contribution by 1%. LOL. If I did that, I’d be contributing 300% of my salary to my 401k at this point.
If you can afford to eat, a modest place to live, and transportation, you should max out your 401(k). However, if there is no match from an employer, and your tax situation permits it, you should max out Roth IRA contributions first. Also do it if you are concerned that you will leave/be dismissed before company contributions vest. Most FO jobs should allow you to do both (and a traditional IRA too), except possibly in the first year if your shop is small and unknown. The trick is to max out the contribution when you first sign up; you don’t tend miss money that you never saw in your pay stub to begin with.
actually, to max out your potential retirement benefit and “contributions” to the plan, a small traditional DB plan is best…lawyer/doctor firms do this all the time…of course your company has to be fully on board to understand why this is the best course and employees must understand the cash/benefit implications if it is important…
had to lower it to pay for all of the fees and classes associated with taking the L2 exam…I figure between registration/schweser/two classes and travel I spent upwards of $2500+