A 401(k) account is a tax-deferred retirement savings account setup by many employers for their employees in the United States. Employees can elect to contribute part of their earnings - either pre-tax or after-tax - to their 401k account and the employer will often make a matching contribution for a portion of it. The before-tax and/or after-tax contributions are subject to yearly limits set by the IRS. Related to the 403b and Thrift Savings Plan (TSP)
Questions tagged [401k]
1138 questions
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Should you always max out contributions to your 401k?
I am a year out of college, and therefore, i don't have any real retirement/investment plans kicked off.
I was having a discussion with my boss, and he was making a few claims I would like to get some input on.
There is no better investment than a…
user606723
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When is employer 401(k) match not worth it?
I have always read to take full advantage of your employer 401(k) match. But what if the match is lower than most? My employer will match 10% of my contributions, up to the legal contribution limit. I understand that an immediate 10% return on my…
Wesley Marshall
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Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?
I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year.
My question is: should I invest in a traditional…
Jay
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What is the logic behind a 50% of X% 401(k) contribution match?
In the situation where an employer is contributing a match to a 401(k), apparently a common formula is to match 50% of employee contributions up to a percentage of their salary. I have also seen this phrased as "50 cents for every dollar".
If the…
friggle
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Justification for aggressive investment strategy when young?
I've frequently heard that the conventional wisdom is to be invested in an 'aggressive' investment strategy when young, and as you approach retirement age, migrate to a more conservative strategy. Given that I've heard it so often, I figure... it…
Rob P.
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Why is there a cap on 401k contributions?
In theory, the government wants everyone to save up as much as possible for retirement so that citizens don't end up starving when they're no longer able to work. But in practice there is a limit of how much you can contribute to your pension fund…
JonathanReez
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Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA?
I recently started a new job and have a 401k from my previous employer that I don't know what to do with. Should I roll it into my new employer's 401k, a traditional IRA or a Roth IRA?
jamesaharvey
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Is it ever logical to not deposit to a matched 401(k) account?
In a recent question Should I dump my savings into my student debt?, there was push back from a member regarding the strong advice to save to the match.
Is there ever a time to not deposit to the match, and pay other debt off faster?
(To those not…
JoeTaxpayer
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Why should I invest so much in 401(k)?
I am 24 yrs old and am making $60,000/yr while saving ~41% of that. 28% of which is going to my Roth 401(k) and the rest is going into a TD Ameritrade and a small amount into a Robinhood account (both managed by me currently).
While I was reviewing…
JoeBo
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Is putting money in a 401(k) plan risky?
I've been working for a company that offers me a MassMutual 401(k) plan as a benefit. The employer's match is 50% of my contribution. I've contributed 3% of my gross salary to the plan, and planning to increase it. All the money in my plan is…
domino
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Ideal net worth by age X? Need comparison references
Is there a website resource that gives suggestions for how much savings or net worth I should have at any given age, based on my education level and salary?
I'm in my 30s, have no debt, and have been maxxing out my 401k and contributed other…
stackoverflowuser2010
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Do traditional and Roth 401k have the same annual contribution limit?
According to everything I can find, the annual contribution limit for both traditional and Roth 401k is the same ($16500 in 2010).
Since the Roth is post-tax, doesn't that mean I can save more for retirement by maxing out a Roth 401k than by maxing…
Mark E. Haase
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Does borrowing from my 401(k) make sense in my specific circumstance?
I know the standard answer and understand that I will be losing out on that compound interest, but I am young and only need to borrow a few thousand. here are some more details:
Need to borrow $6500 to pay off a car and two student loans…
J. Tate
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Could my employer match contribution have caused me to have an excess 401K contribution?
Could my employer's match have caused me to have an excess 401K contribution?
For 2020, I contributed the maximum into my 401k-Roth, $19,500. I also made a catch-up contribution (I'm eligible) to my 401k-traditional of $6500 for 2020. So I believe…
Ira
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Is 401k as good as it sounds given the way it is taxed?
I contribute full 18 to my 401k thinking I am letting my money grow untaxed for such a long time. However, looking at how 401k is taxed when I pull the money out, it does not sound like a great deal because it is taxed like regular income. As oppose…
Lost
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