So your company is offering a 401(k) plan. You know the length of the vesting period and you’ve discovered that the company will match everything you contribute on a generous 50 percent basis. You’re ready to start putting money aside for your future.
How much do you save?
That feels like a difficult question. On the one hand, the more money you can put away the better your retirement will be. You’ll also be able to lower your taxes and the matching contributions will increase your income.
On the other hand, you won’t be able to touch those funds before you turn 59.5, and that might feel a long way away. In the meantime, you’ve got a mortgage to pay, student loans to pay off, and it might be nice to have a vacation one day. Money in your 401(k) is money that you can’t use now.
As you weigh up the amount you want to contribute to your 401(k), there are a few things you need to consider.
- What Is a 401(k)?
- How a 401k Plan Works
- 401k Contribution Limits
- The Difference Between a 401(k) and a Pension
- The Benefits of a 401k
- Four Alternative 401(k) Plans
- How Employers Should Choose a 401(k)
- What Is an Indexed Annuity?
- 5 Questions Employees Should Ask Before Choosing a 401(k)
- Contributing to Your 401(k) Plan
- Contribution Limits
- Matching Contributions
- Your Age
- How to Set Your 401(k) Contribution Targets
- Calculating Your Social Security Benefits
- What’s In Your 401k Plan?
- Track Your 401(k)
- The Present and Future Value of Your 401(k) and Why You Need to Know Them
- Rolling Over Your 401(k)
- You Don’t Have to Rollover Today
- Moving Your 401(k) to Your New Employer With a Direct Rollover
- Moving Your 401(k) to Your New Employer With a 60-Day Rollover
- Borrowing Funds from Your 401(k)
- Lend Yourself Interest-Free 401(k) Funds
- Borrowing from Your 401(k) to Buy a Home