Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
So the question is do I change my 401K contribution to 20% or keeep it at 15%? My company matchs 1.5 of the first 4% (4% + 6% = 10%)

You've accompished the first goal: get all of the matching funds available.

I make over $60K which means I will have to ration my contribution somewhat (but I have yet to find a table that shows me how).

I'm not quite sure what you mean by "ration," but...

The 401k contribution limit for 2003 will be $12K, IIRC, which is 20% of $60K. If you are going to make more than $60K, your 401k contribution will be capped at $12K. [Unless you make after-tax 401k contributions, but I'd suggest making a Roth IRA contribution first.]

If your employer, like many employers, matches your 401k contribution paycheck-by-paycheck, you don't want to hit the cap before the end of the year...otherwise, you might miss out on some matching funds.

So the question is do I change my 401K contribution to 20% or keeep it at 15%?

If you are going to hit the $12K cap before the end of the year, keep your 401k contribution below that amount, whatever percent that is.

Beyond that, it really depends on what else you'd do with the extra cash in your pocket.

Good Luck,
JDOyster



Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.