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| Stacy9402 |
 Posted: Fri Feb 11, 2005 7:19 am Post subject: How much money in 401k |
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Investing Associate
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| How much money should one put in their 401k account? |
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| TheDisneyBunch |
| Posted: Fri Feb 11, 2005 7:43 am Post subject: |
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Investing Associate
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| You would have to clarify this question. There is a annual limit on what can be deferred into a 401(k). For 2004, the limit is $13,000. |
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| trixiezzz |
| Posted: Sat Feb 12, 2005 6:23 am Post subject: |
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Investing Manager
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| Will the limit be the same for 2005 or is it going up, too? |
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| laf0165 |
| Posted: Thu Feb 17, 2005 11:54 am Post subject: |
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Limit is $14,000 for 2005
If you are at least 50 years old, you may defer an additional $4,000 as a catch-up contribution. |
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| ammo |
| Posted: Sat Feb 19, 2005 8:01 am Post subject: |
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Investing Sr. Associate
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| What does 401k mean, ITs an american thing right, ive never heard it said over hear, except on american tv programs lol |
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| jelijo |
| Posted: Sat Feb 19, 2005 7:17 pm Post subject: |
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401K is a retirement account that is employer-sponsored. The funds contributed to the 401K are not federally taxable (there are yearly limits to contributions), but we do pay social security and medicare taxes on them. Employers often match the employee's savings, up to a certain amount. For instance, my employer matches my contributions up to 5% of my salary.
| ammo wrote: | | What does 401k mean, ITs an american thing right, ive never heard it said over hear, except on american tv programs lol | |
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| trixiezzz |
| Posted: Sun Feb 20, 2005 10:25 am Post subject: |
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Investing Manager
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| I continue to love 401ks. My first one I opened over 15 years ago. With the passing of time I've seen just how much it's grown ~ tax deferred!! |
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| bigdave |
| Posted: Sun Feb 20, 2005 11:14 am Post subject: |
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Investing Sr. Associate
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I would put max of the comapny match then put other money in IRA as it is easier to access than you 401K for home purchase or college. Then if you still have money left over after that invest in stocks or increase your 401K contributions.  |
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| trixiezzz |
| Posted: Tue Mar 15, 2005 4:11 am Post subject: |
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Investing Manager
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| If you contribute the maximum amount each year for seven years, you can save almost 1.5 times the amount that you would have saved by putting away only $2,000 per year for the same period! |
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| tylr |
| Posted: Sun Mar 20, 2005 5:49 am Post subject: Re: How much money in 401k |
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Investing Associate
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| Stacy9402 wrote: | | How much money should one put in their 401k account? |
If your 401K plan has company matching it always good to take advantage of this 'free' money so atleast contribute up to the matching limit. How much more depends on your finances ie. whether you have high interest debts, need to save for other near term goals ie. emergency fund, buying a house, car etc. |
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| thrilla |
| Posted: Sun Mar 20, 2005 5:14 pm Post subject: |
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Investing Sr. Associate
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My personal preference is to contribute to the 401k up to the employer match and then put the rest into an IRA. With the 401k, I have less ability to control where my money goes. With my IRA, I can choose exactly where I invest my money.
I would suggest at least contributing to the employer match, because that is basically a guaranteed return of 100% of your investment. Any more than that and it really depends on the funds you selected. |
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