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Old 04-08-2015, 01:20 PM   #1
yousharenow
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401k: Do you contribute past the match?

Since everyone in here is billionaires and pays for everything with cash, I got a question for yall.


Do you contribute past the match point in your 401k?

My company does 50% up to 6% of my salary. So If put in 6%, they put in 3%.

What's the benefit for bumping up my contribution rate?
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Old 04-08-2015, 01:30 PM   #2
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Yes.

Lower your effective tax rate.
Save more for retirement.
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Old 04-08-2015, 01:35 PM   #3
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Old 04-08-2015, 01:41 PM   #4
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no. I don;t have a 401k.
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Old 04-08-2015, 01:42 PM   #5
evolved
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My company kicks in 1:1 on 3%.

They also kick in, by way of a separate retirement account, 9% of salary (age based....% goes up as age goes up) for just being here. So, all in 15% of my salary is getting chipped in if I contribute 3%.

So, no, I don't kick in any extra.

Also, if one is able to contribute to an IRA, in addition to a 401k, it makes sense to utilize the match (duh...free money) and put any extra into your IRA/Roth.
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Old 04-08-2015, 01:44 PM   #6
Chris3Duke
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Yes. Until about 9 months ago, both my wife and I maxed out ($18k).

We had to drop that down to the company match when our son was born, due to our costs skyrocketing (another kid in daycare, health insurance up, plus all the normal baby costs like diapers, clothes, etc).

I haven't filed my taxes yet, but we're going to feel the loss of that tax break.

If you're in a high tax bracket, the tax benefit is huge, especially once you get into the newer medicare surcharges on $250k+ etc.

If you're in a lower tax bracket, either save in a brokerage account toward something like a house, or save in a ROTH IRA/401K.
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Old 04-08-2015, 01:53 PM   #7
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My personal preference (if all options are available to you) is:

1. Contribute what is necessary to get the max matching in your 401k.
2. Max out Roth IRA.
3. Put additional contributions into 401k until you reach ~15% of your income going to your 401k/Roth IRA. Saving at that rate "should" be adequate for retirement savings if you start saving relatively early in life.

If your income won't allow you to use a Roth, then switch the second part to a traditional IRA unless your funds in the 401k are really good and have really low fees, but generally commission free ETFs are a better option for most people.

If your income is really really high, consult an expert instead...
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Old 04-08-2015, 01:56 PM   #8
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don't have a 401k, i'm not poor. might as well be on food stamps too. peasants.
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Old 04-08-2015, 01:56 PM   #9
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Not a penny more than my company matches (6%), but I'm in a 25% tax bracket filing single and owning my own home

I use the other cash investing in a NWM account.
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Old 04-08-2015, 01:57 PM   #10
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My personal preference (if all options are available to you) is:

1. Contribute what is necessary to get the max matching in your 401k.
2. Max out Roth IRA.
3. Put additional contributions into 401k until you reach ~15% of your income going to your 401k/Roth IRA. Saving at that rate "should" be adequate for retirement savings if you start saving relatively early in life.

If your income won't allow you to use a Roth, then switch the second part to a traditional IRA unless your funds in the 401k are really good and have really low fees, but generally commission free ETFs are a better option for most people.

If your income is really really high, consult an expert instead...
livin the good life!
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Old 04-08-2015, 02:02 PM   #11
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Not a penny more than my company matches (6%), but I'm in a 25% tax bracket filing single as head of household.

I use the other cash investing in a NWM account.
why are you head of household? i smell an audit coming your way.
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Old 04-08-2015, 02:07 PM   #12
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why are you head of household? i smell an audit coming your way.
Sorry, I didn't mean filing as HOH as in the sense of having a dependent, I just meant I own my own place and filing single lol. Ya that was worded wrong, my bad.

...and I didn't get audited.
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Old 04-08-2015, 02:09 PM   #13
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I can't even meet the match.

I do contribute, though.
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Old 04-08-2015, 02:18 PM   #14
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I used to do 15% of my salary but now meet the match, which is also 50% of 6% of my salary. But I invest in other ways so it works out. I've heard 15% is a good number to save for retirement.
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Old 04-08-2015, 02:24 PM   #15
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I can't even meet the match.

I do contribute, though.
Try to increment up gradually if you can. Maybe increase by 1% each year up until the match. I'm sure you know, but not getting the full match is leaving a lot of money on the table which compounds. Over the next 30+ years of working it will be worth cutting any unnecessary items to get that extra little bit in your account.

Easier to say that do!
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Old 04-08-2015, 02:28 PM   #16
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Total yearly contributions with my company matching is 20% into 401k.
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Old 04-08-2015, 03:03 PM   #17
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Try to increment up gradually if you can. Maybe increase by 1% each year up until the match. I'm sure you know, but not getting the full match is leaving a lot of money on the table which compounds. Over the next 30+ years of working it will be worth cutting any unnecessary items to get that extra little bit in your account.

Easier to say that do!
I haven't had a raise in about two years. Getting ready to pack it up and look elsewhere.
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Old 04-08-2015, 03:22 PM   #18
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I haven't had a raise in about two years. Getting ready to pack it up and look elsewhere.
.... Not even a yearly COLA? Ya I would move on man...
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Old 04-08-2015, 03:28 PM   #19
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I haven't had a raise in about two years. Getting ready to pack it up and look elsewhere.
step one is moving the fvck out of alabama! LOL why again do you live there? did you rape a beagle and its the only state that won't prosecute you?
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Old 04-08-2015, 03:34 PM   #20
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My company matches 50% up to 6% of salary. I'm contributing the max until I start having more expenses. (I'm not married, no kids, etc)

I'm also contributing 15% of my salary towards ESPP.
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