How much do you contribute to your 401k/403b?

[isasir]

After reading the thread on the Millionaire Next Door book, I decided to increase my contribution to retirement from 10% to 18% per paycheck. This makes my monthly contribution to retirement approximately $800/month.

I'm 25, and I can afford to contribute that much right now. However, if I do get married in a year or two, which is likely, I'll probably need to lower that a bit. But at least, at this point, compounding interest will hopefully be my friend in the long-run.

New question - Does anyone know how forfeitures in profit-sharing works? Is that extra money my company gives to those that are fully vested when non-vested people leave, or is it just money that is used to pay off what I was to have received anyways?

 

[polm]

uhhh....not that much

more like 300$ a month...im 25...i make about 50K a year.

 

[Zombie]

I do 7% and company adds 3% as match. Since I don't have the incentive of th company match after that 7% I put the rest of my money in stocks and Roth IRA.

 

[Ausm]

Around 20K /year.

Sysadmin

 

[polm]

Originally posted by: polm
uhhh....not that much

more like 300$ a month...im 25...i make about 50K a year.

geez...with rent, car, insurance, and bills there is no way I could contribute much more. Maybe another couple hundred bux at the most.

 

[gistech1978]

3% employer matches with 10% of gross salary, mandatory.

 

[FeathersMcGraw]

Originally posted by: Zombie
I do 7% and company adds 3% as match. Since I don't have the incentive of th company match after that 7% I put the rest of my money in stocks and Roth IRA.

Even if you don't get matching funds, 401(k) contributions are in pre-tax dollars. Unless your investment options are particularly poor, I would consider contributing more to your 401(k) once you've maxed your Roth IRA contribution for the year.

 

[isasir]

My employee match is minimal, so I didn't even include that in my figures. My take-home pay will now be what it was 2 years ago before I got a few pay raises. I figured I lived off this amount then, so I can still do it now.

BTW, I have yet to open up a Roth IRA, even though I upped my 401k amt. Whether this is a good idea or not, I guess is debateable.

 

[AmitPatel]

Originally posted by: Sysadmin
Around 20K /year.

Sysadmin

401k contribution limit for this year is 13k...are you including matching funds?

I try to get the max contribution, so this year it'll be 13k

 

[Zombie]

Originally posted by: Sysadmin
Around 20K /year.

Sysadmin

hmm isn't there a limit of 13k/year for people under 50 ?

 

[kranky]

Good for you that you increased your savings. Keep in mind that you should have a part of your long-term savings separate from your 401k plan. In other words, don't put all your eggs in one basket. Make sure you're getting the full benefit from your employer's matching, at least.

You'll give up a tax break if you put some of your savings outside your 401k, but you shouldn't have your entire savings in a 401k.

 

[polm]

Originally posted by: isasir
My employee match is minimal, so I didn't even include that in my figures. My take-home pay will now be what it was 2 years ago before I got a few pay raises. I figured I lived off this amount then, so I can still do it now.

BTW, I have yet to open up a Roth IRA, even though I upped my 401k amt. Whether this is a good idea or not, I guess is debateable.

care to divulge your current yearly salary b4 taxes ?

 

[Xionide]

Well I dont think anyone has that many posts yet. I mean nfs4 hasnt even hit his first 100k let alone 100 billion posts.

-Xionide

 

[beatle]

Only 6% for me. My employer will match up to 3%, so I'm getting an effective 9%. I'm only 24, however, and I'm not making the big bucks yet.

 

[Zombie]

Originally posted by: FeathersMcGraw

Originally posted by: Zombie
I do 7% and company adds 3% as match. Since I don't have the incentive of th company match after that 7% I put the rest of my money in stocks and Roth IRA.

Even if you don't get matching funds, 401(k) contributions are in pre-tax dollars. Unless your investment options are particularly poor, I would consider contributing more to your 401(k) once you've maxed your Roth IRA contribution for the year.

yes but after ESPP, 401k, roth IRA and other stock Investments I don't have any more money left to invest. I like to have a safety net of 20k in my savings + checking .

 

[RossMAN]

I contribute 10% and my employer matches up to 6%

 

[Atvar]

I contribute 8%. Thats what my company matches so for right now thats decent.

 

[Zombie]

Originally posted by: RossMAN
I contribute 10% and my employer matches up to 6%

dollar for dollar match ?

that's good.

 

[Feldenak]

3% to get the matching 3% from the company. The actual money amount varies from week to week depending on how many hours I work.

 

[HeroOfPellinor]

3% just for the matching. Hey, it;s free money.

 

[FeathersMcGraw]

Originally posted by: Sysadmin
Around 20K /year.

Are you including matching funds in that figure? Because I'm pretty sure the maximum employee contribution before matching is $12K, unless you're making catch-up contributions.

If not, you should talk to your HR department; I don't know if penalties apply to contributions over the cap, but knowing the IRS, I wouldn't be surprised.

 

[RossMAN]

Originally posted by: Zombie

Originally posted by: RossMAN
I contribute 10% and my employer matches up to 6%

dollar for dollar match ?

that's good.

Yep dollar for dollar after 1 year employment.

It takes several years to be "fully vested", which I am.

 

[Zombie]

oh, we are vested at 25% a year and I am almost there.

I didn't include the stock options cause they aren't worth crap .

 

[JulesMaximus]

Originally posted by: Sysadmin
Around 20K /year.

Sysadmin

IRS limits you to $13k/year.

 

[Dead3ye]

Originally posted by: RossMAN

Originally posted by: Zombie

Originally posted by: RossMAN
I contribute 10% and my employer matches up to 6%

dollar for dollar match ?

that's good.

Yep dollar for dollar after 1 year employment.

It takes several years to be "fully vested", which I am.

I'm the exact same here. We must work for the same company.