By The Book
Well-Known Member
Can you explain your sitch in lay mans terms, in less than 35 words? Were you using the accelerator and without lowering the percentage it would of put you over the max of $18,000?
Time to bump up that 401k
Brownslave688
You want a toe? I can get you a toe.
I see a lot of pay stubs with 2-3%
Brownslave688
You want a toe? I can get you a toe.
Jackburton
Gone Fish'n
I made 127k last year and was unable to contribute the maximum under the Prudential Retirement plan. The reason for this was because of a law that restricts employees of companies that are deemed highly compensated, to contribute the federally allowed maximum to their own 401ks if not enough lower earners of the company aren't contributing enough to their own 401ks
The reason for this is to prevent the HCE (highly compensated employees) to use the 401k as strictly a tax shelter and to incentivize the lower employees to contribute to keep the HCE's able to contribute the max.
The problem UPS has is we are offered a pension, so many don't think they have a reason to contribute to the 401k in the first place. Secondly, I have no control over decisions that are made as I'm just a driver, but am being punished because I worked my ass off to achieve that level of salary last year.
Needless to say, one of the reasons I'm not working as much this year is because of the aforementioned.
Sorry that it's not 35 words or less, but I hope I cleared up any confusion.
olroadbeech
Happy Verified UPSer
If
the mortgage was paid off in 17 years instead of 30 and we saved about $135,000 in interest . The BIG bonus was that I was able to retire 5 years earlier . I did not have to wait for social security to help pay the house payment.
and the peace of mind is priceless.
you have maxed out your retirement plans , a good course of action is to pay down your mortgage no matter the interest rate. we started adding an extra 100 a month to the principle and quickly bumped it up to 500 over a few years. did not really miss that money when I ran the numbers.
the mortgage was paid off in 17 years instead of 30 and we saved about $135,000 in interest . The BIG bonus was that I was able to retire 5 years earlier . I did not have to wait for social security to help pay the house payment.
and the peace of mind is priceless.
Jackburton
Gone Fish'n
I should have stated I do ROTH401k contributions. ROTH401k/IRA's and 529 educational accounts are the only investments that the growth is tax free at withdrawal. I'd include HSA accounts if used for medical, but that's really an insurance product.
It makes you save money that most would otherwise spend. Plus if you had to file for bankruptcy they can't come after your 401k
1989
Well-Known Member
For me, the 401K has been my 2nd worst investment. Second only to the last 10K I put into Dendreon.
Brownslave688
You want a toe? I can get you a toe.
So you chose poorly in your 401k. What's your point?
1989
Well-Known Member
No, my money is held hostage in the 401K. If I had known 30 years ago, I would not have touched it. I was young and ignorant.
Brownslave688
You want a toe? I can get you a toe.
That's kind of the point of retirement money.
You're giving terrible advice for 99.9% of the people on here.
Did any one bump their 401k, with all of the overtime we are getting??
I did, my withholdings changed from married to single. I was getting a ton more taxes taken out so I figured I could try and offset it.
They pound you with taxes. I would rather put it in my 401k than give it to Uncle Sam
agreed, Im not at top rate but my check last week was $200 more than the previous week but I only brought home $35 more because of the withholding change, talk about some BS.
Brownslave688
You want a toe? I can get you a toe.
No way. Who wants to buy in now?
Dollar cost averaging inNo way. Who wants to buy in now?
We get our raise today. Don't forget to turn up that 401k
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