401k question

[Inky_Wretch]

If the company stops doing matching contributions to your account, is it still worth it to plug more money in?

Yes, yes, I know all about the pre-tax advantages. But watching the account shrink combined with not getting the company's contribution is making me rethink it.

Somebody hold my hand and say everything will be OK.

 

[cranberry]

If the company stops doing matching contributions to your account, is it still worth it to plug more money in?

Yes, yes, I know all about the pre-tax advantages. But watching the account shrink combined with not getting the company's contribution is making me rethink it.

Somebody hold my hand and say everything will be OK.

How old are you?

Generally speaking, you should continue contributing at the maximum allowed. Think of it as buying low.

Just make sure it's diversified sufficiently and you're not dumping your dollars in company stock.

 

[Grimace]

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

 

[Captain_Kirk]

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

That's generally about average--at least it was a year ago.

A year from now, that might be the best thing out there.

 

[mustangj17]

Yes. Compound interest is the 8th wonder of the world.

 

[trifectarich]

Unless you fall into that rare one-quarter of one percent of Americans, you can never save enough.

 

[spnited]

Or you could roll it over into an IRA on your own and contributing to your retirement fund that way

 

[mustangj17]

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

That's generally about average--at least it was a year ago.

A year from now, that might be the best thing out there.

So basically they match up to 3 percent.

 

[PeteyPirate]

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

That's generally about average--at least it was a year ago.

A year from now, that might be the best thing out there.

So basically they match up to 3 percent.

No, because you have to contribute 6% in order to get the 3%.

 

[imjustagirl]

I worked one place that matched 1-1 up to 3 percent.

Another place was 50 cents a dollar up to 4 percent.

 

[Captain_Kirk]

Or you could roll it over into an IRA on your own and contributing to your retirement fund that way

Unfortunately very, very, very few of us have the discipline to make those contributions with the same steady regularity as when the funds are taken from our pay before we ever see them.

 

[cranberry]

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.

 

[PeteyPirate]

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.

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

 

[cranberry]

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.

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

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

 

[trifectarich]

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.

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

 

[cranberry]

My employer contributes 7.5 percent of your salary (up to $17,500) even if you don't contribute a dime. I max out.

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.

 

[mustangj17]

A mild thread jack: My company matches 50 cents a dollar up to 6 percent. Is that good, average, below average?

That's generally about average--at least it was a year ago.

A year from now, that might be the best thing out there.

So basically they match up to 3 percent.

No, because you have to contribute 6% in order to get the 3%.

They still match UP TO 3 percent.

You put in six. They match three.

 

[User 1019]

Or you could roll it over into an IRA on your own and contributing to your retirement fund that way

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

Or you could roll it over into an IRA on your own and contributing to your retirement fund that way

Unfortunately very, very, very few of us have the discipline to make those contributions with the same steady regularity as when the funds are taken from our pay before we ever see them.

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.

 

[waterytart]

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.

 

[qtlaw]

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.