401k question

You get 7.5 percent of my salary? That's bullshit. No wonder I'm broke.

 

I always choose to tap into a banker's salary!

 

Into a 401k or another kind of account? That $17,500 figure is more than what's allowed for just about everyone.

 

The max for employee contributions was capped at something like $15,500 last year. Employer was allowed to contribute up to $17,500. Also could be technically somewhat different than 401-K under tax code as we're non-profit.

 

They still match UP TO 3 percent.

You put in six. They match three.

 

That's my advice. It has been my experience that 401k's are pretty limited.

Don't most employers offer some sort of payroll deduction plan. The handful of newspapers I've worked for offered one. My current offers five.

 

Inky, you can research the quality of the mutual funds which are your probable 401(k) options at a site like Morningstar. If your company offers high-quality investment options, stick with the 401(k). If not (eg, the expense ratios are too high), go with spnited's rollover advice if they'll let you roll over while you're active.

 

Stay in. Its forced savings and you will not notice it because its pretax dollars. Yeah the past year has been a total shock but in the long run, if your plan is diversified, the returns will come back and you will be glad you did.