How much of your paycheck goes to your 401K?

[BoostTed]

Whats everyone contributing? I started doing 7% but i think I might bump that up a bunch.

[EC Motorwerks]

6% and work matches it i believe.

[tigabalm]

I dunno i just know that i hate FICA and all associated govt revenue stealing agencies!!

peace

[needforspd]

I was at like 10% starting, but got into money trouble w/ the IRS (claimed 9 for a most of a year and owed over $3gs to them, DOH!!) so I knocked it down to 1% and thats where it's at today. My work matches some of it too.

If im ever debt free ill bump it back up.

[BoostTed]

Originally posted by needforspd
I was at like 10% starting, but got into money trouble w/ the IRS (claimed 9 for a most of a year and owed over $3gs to them, DOH!!) so I knocked it down to 1% and thats where it's at today. My work matches some of it too.

If im ever debt free ill bump it back up.

LOL how the hell do you claim 9???

[bong2611]

i put 10% in mine.

[quattro30v]

i forgot now but i know there's a lot of money in there, coz work matches it, that's why i don't take home as much anymore, sucks for now but later i guess i will be thankful that i did it! .... wooohooo i can retire next year! hahahaha

if you think you are a conservative investor, then make sure to put more money to your money market account, that way it's stable, but if you wanna be agressive, then distribute it to those who earns a lot but watch out coz they fluctuate a lot.

[needforspd]

Easy, I just filled out my W2 w/ 9 withholdings (work doesnt need to report it to the IRS as long as its under a certain amount, it was 10 back in 2000/01).
I had no Fed or State taxes taken out of my check, thats why I ended up owing so damn much. Was nice to have the bigger checks but in the end it came back and bit me in the ass hard!

Originally posted by BoostTed
LOL how the hell do you claim 9???

[DDQ]

Being an investment advisor, I recommend you always max out your 401k. Tax free is the best return you can get on your money. You figure if you're average, and in the 30% tax bracket, you just made 30% on your money right there. Then couple that with the power of compounding from investing in the stock market, and you'll retire nice.

And leaving your money in a money market fund is silly, IMO. While the market may be shitty for a few years here and there, who cares? You won't be touching this money until you're old and gray. Just diversify it, and put it in some balanced funds, and stop looking at your statements for the next 30+ years.

[Kirath]

0% - my financial situation is sad right now.

[piaadoll]

6% cuz of the company match. wish i can contribute more though...maybe when i'm done with both my cars....whenever that is!

[marked001]

4% I believe... and my company matches.

[Cup-a-Chow]

For a long time my sister had 21% in her 401k. She brought home less money than you can bring home working some crappy retail job...

But then again she lived at home then and didn't have much expenses. Still, seeing so much of it going into 401 and taking home so little money seems depressing.

[funkadelic]

i contributed the federal limit my earlier years working and gradually scaled back as I needed the money for the downpayment on my house.

put as much as you can when you're young...it's hard to make up for it later down the line (like all the 401k literature say). contributions are tax free & earnings compound tax deferred. Even better if your employer contributes to your 401k via matching, etc.

eg. if you're making 100k & contribute 12% of your salary (the 2004 401k contribution limit is capped at $12,000), you will cut your yearly income tax by $3960 if you're in the 33% tax bracket (since the contributions to the 401k lower your taxable salary)

http://www.quicken.com/cms/viewers/qanda/retirement/800

[SoCalAgentMSK]

There are many thigns to consider when trying to figure out how much you want to contribute to your 401(k).

First thing to look at is how much your company matches. If your company matches 50% of the first 6%, the MINIMUM you should divert to your 401(k) is 6% because your company is giving you FREE MONEY (the best kind).

Another thing to look at is what tax bracket you are currently in and decide if you want to contribute to a 401(k) or a Roth IRA. The BASIC difference between the two accounts is that a 401(k) is usually run by your employer and the money that goes in is tax free, but when you can take it out later down the line it will be taxed at the governments rates. A Roth IRA is a retirement account set up by you and the money that goes into it is taxed, but when you take it out it will not be taxed.

401(k) - $1000 paycheck, 20% diverted, and a company match of 50% of the first 6% (most common). This means you get $200 in your 401(k), $30 in FREE MONEY from your company (1000x.06x.5), and pay government taxes (lets say at 25%) on $800.

This means that you get $230(401k and company match)+$600 (800 - 25% taxes) = $830 you get to keep. At age 65 you take out $30,000 from your 401(k) and it is taxed by the government (lets say at 25%), you would end up getting $22,500.

Roth IRA - $1000 paycheck, 20% diverted (companies do not match Roth IRAs). You pay taxes on $1000 (again at 25%) so you would get to keep $750 total, $600 in your pocket and $150 in your Roth IRA. At age 65 you take out $30,000 but it is now tax free so you keep all $30,000.

Hope this helps you out.

Also check out this website. www.fool.com

[dbtong]

No rhyme or reason for me...I contribute 10%.

[/\G]

10% plus the company match for about 5 years. Not diversified.

LET IT RIDE!

[ncttrnl]

6% for now... It was higher but then I bought a condo.