retirement savings and building wealth

[lincolnboy]

pay off all debt sooner then later. we don't go no where to pay off any size debt fast. Shit, i get $20 a week allowance and thats all i get to spend during the week.

[SonicblueGT03]

Company matches at 7% if you contribute at least 6%. I currently put in 10% on my own, so 17% total contribution with employer matching, which comes out to around $21,000. I'm also over 50 and apparently qualify for something called "makeup" contribution? Don't quite understand that one, anyone want to shed light on it?

[slow99]

Company matches at 7% if you contribute at least 6%. I currently put in 10% on my own, so 17% total contribution with employer matching, which comes out to around $21,000. I'm also over 50 and apparently qualify for something called "makeup" contribution? Don't quite understand that one, anyone want to shed light on it?

You aren't limited to 17,500 a year. This year your limit is 23,000.

[Hmbre97]

The 17,500 limit, is that total contributions including what the employer contributes through matching?

[slow99]

The 17,500 limit, is that total contributions including what the employer contributes through matching?

Your personal contributions. Employer match is on top of that.

[Nash B.]

Also, the vesting issue comes into play with a 401K. If you have an IRA, it is all yours except the early withdrawal penalty just like in the 401K.

What vesting issue?

[slow99]

What vesting issue?

Ha, I just caught that.

[Broncojohnny]

I got no problem with vesting. I think it makes you look great and that is why i wear a three piece daily. With a pocketwatch on a chain. And a monocle. Jeeves, do bring the car around, i would like to do some burnouts.

[46Tbird]

[sc281]

I got no problem with vesting. I think it makes you look great and that is why i wear a three piece daily. With a pocketwatch on a chain. And a monocle. Jeeves, do bring the car around, i would like to do some burnouts.

He's probably talking about sweatervesting.

[sc281]

Fucking mother fucker......

[propellerhead]

Max out your 401k, first. Then look into a Roth IRA second.

When you max out your 401k, let's say 10%, if you're in the high income range, you get the side effect of having a "raise" towards the end of the year when the 401k company has pulled out the $17,500 already. Suddenly, your paychecks are bigger because they stopped taking some out for your 401k account.

[SonicblueGT03]

You aren't limited to 17,500 a year. This year your limit is 23,000.

Thanks! Looks like I need to make some changes.