Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: decath Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5068  
Subject: 401k Contribution Increase Date: 12/18/2010 10:31 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Next year, I turn 50, so on Jan 1st, I'll start putting in the catch up contributions of $5000 into my 401k. The 401k total will equal 26% of my income. Nice!

In addition, I'll continue to max my Roth IRA, also taking advantage of the catch up contribution of $1000 for both my wife and I.

Also in 2011, I've decided to max-out my HSA contributions, which will be another 5k plus of tax deferred contributions. I think at the age of 65, you can withdraw from your HSA for any reason at all, not being limited to health expenses. So if you live that long, it's just like another IRA account.

LBYM sure has it's benefits! My wife, 3rd daughter and I easily live on 1/2 our income (includes taxes), which makes this all possible.

My taxes will go down some, but not that much because my 3rd child turns 17 next year. I'll lose the child tax credit.

decath
Print the post Back To Top
Author: BKlounge22 CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4926 of 5068
Subject: Re: 401k Contribution Increase Date: 12/18/2010 11:12 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Bravo. Glad to hear that getting old isn't ALL bad! Best wishes for 2011.

BK

Print the post Back To Top
Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4927 of 5068
Subject: Re: 401k Contribution Increase Date: 12/18/2010 6:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Nice. Now I'm just hoping that these provisions are still in place come 2015 and beyond.

#29

Print the post Back To Top
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4928 of 5068
Subject: Re: 401k Contribution Increase Date: 12/19/2010 9:53 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I think at the age of 65, you can withdraw from your HSA for any reason at all, not being limited to health expenses.

Yes, but you owe taxes at ordinary income tax rates. Of course the laws can/will change by the time we get there.

JLC

http://www.hsainsights.com/common-questions-on-hsas-definiti...

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement