Comments on: IRS Maximum Allowed 401k Contribution Increases in 2009

By: 401 k Plans

401 k Plans — Tue, 19 Apr 2011 05:26:02 +0000

We are so happy for our 401k retirement plan. Quite better than the old retiement plan I used to have.

By: Dulce

Dulce — Tue, 18 Jan 2011 23:32:25 +0000

Don’t you have to take into account how many paychecks you get a year in order to calculate the percentage that will get you to max out?

By: Phil Grindel

Phil Grindel — Sat, 25 Dec 2010 21:33:50 +0000

We are so happy for our 401k retirement plan. Quite better than the old retiement plan I used to have.

By: Ank0288

Ank0288 — Mon, 19 Apr 2010 13:21:17 +0000

I am turning 50 this year. Do I qualify to contribute the extra $5,500 this year?

By: Harry S.

Harry S. — Sun, 31 Jan 2010 16:45:54 +0000

I have a regular 401k plan. Is it possible to make direct contributions to it when I have extra money (within the limits), on top of what’s taken out regularly?

By: jason

jason — Tue, 17 Nov 2009 23:33:12 +0000

my employer matches 100% up to 12.5% of my salary… beyond that i put my other investments into a roth

By: JoesMoney

JoesMoney — Thu, 08 Oct 2009 20:27:24 +0000

@ Trevor – a 6% match is still not bad. I wish my employer would match everything too. I get the same 6% as you.

By: Freedom

Freedom — Mon, 28 Sep 2009 17:24:51 +0000

401K problem employer. I think so

By: VH

VH — Mon, 31 Aug 2009 21:01:53 +0000

In regards to being required to sign up for a 401K –

Automatic enrollment in a 401(k) plan. A 401(k) plan can have an automatic enrollment feature. This feature permits the employer to automatically reduce the employee’s wages by a fixed percentage or amount and contribute that amount to the 401(k) plan unless the employee has affirmatively chosen not to have his or her wages reduced or has chosen to have his or her wages reduced by a different percentage. These contributions qualify as elective deferrals. This has been an effective way for many employers to increase participation in their 401(k) plans. These contributions qualify as elective deferrals. For more information about 401(k) plans with an automatic enrollment feature, refer to Income Tax Regulations section 1.401(k)-1(A)(3)(ii).

On the IRS website (emphasis added) http://www.irs.gov/retirement/sponsor/article/0,,id=151800,00.html

By: James

James — Wed, 03 Jun 2009 20:46:15 +0000

This article is sort of misleading. It’s not always best to do all your investing via 401k, especially for most 20-somethings. The rule of thumb I go by is to first contribute the minimum amount possible to obtain the maximum company match. Then take the rest of your investment money and pump it into a Roth IRA. 20-somethings typically are trying to save up for a house. With a Roth IRA, you’re allowed to take out contributions PLUS earnings to put toward a down payment on your first home (must have the Roth open for at least 5 years). What’s that you say? Roth IRA is taxed before investment? Well, think about mortgage insurance. If you own less than 20% equity in your house, you’re forced by law to pay mortage insurance, which can be up to around $1500 per year on a $200,000 home.

And mortgage insurance is just one reason to start a Roth IRA. You can also withdraw contributions & earnings if you have a hardship.

And, in case you didn’t know, you can also withdraw contributions at any time, for any reason without penalty. Can’t do that with a 401k unless you want to take a 30%+ hit!

Stay liquid. Put the extra $ in a Roth.