The Motley Fool Discussion Boards
Retirement Discussions / FIRE Wannabees
|Subject: 401k Contribution Increase||Date: 12/18/2010 10:31 AM|
|Author: decath||Number: 4925 of 5145|
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.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|