% of your income you contribute to your 401K

[HappyLady]

Yes--I do save and use bonuses as well to help me make it through the beginning of the year when my take home pay is low! Part of the reason I front load is that, this way, if I decide or need to leave my job mid way through the year (I travel a lot for work, so am anticipating burn out soon!), I wouldn't need to worry about not being able to contribute right away at a new job, because my 401k would be close if not already maxed out for the year. An odd way of thinking about it, I'm sure...but it does work for me

[Tiny]

I've been able to max my 401(k) but it took me 5 years of consistently raising my contribution AND fixing my finances so I wasn't relying on my yearly bonuses and vacation day cash outs for everyday living. I do rely on the bonuses/vacation day cash out to get me to the max contribution amount. If I don't get a bonus or don't cash out 5 days of vacation I won't make the max. I'm currently contributing 19% which isn't enough if I don't get the bonuses or vacation day cash out. .
I didn't wake up one morning, sign on to the 401(k) website and bump my contributions from 8% to 19% in one fell swoop. It took me 2 years of 3% bump ups (raises) and then 3 years of more gradual bump ups and of course pay increases and being able to cash out 5 days of vacation... to do it. I spent 2 years without an increase in take home pay. I was gonna go a third year but I really did need a "cost of living increase".

I think the point/reason whatever to encourage someone to max their 401(k) is to get them to think beyond just meeting the employer match and to get them consider bumping up their contributions every year by a percent or 2. If you are 25 now and contributing 3% and make the effort to bump up your contributions by 1% every year (even when you change employers) in 10 years you'll be contributing 13% (at age 35) without any strain or effort. 13% might not be enough - but it's way better than just contributing 3% for 10 years. I highly doubt anyone signs up for their 401(K) with a 20% contribution - well, maybe someone who's switched jobs and is already use to living on 20% less gross income.

[2girlzdad]

I put in 10% and max out in October, usually. My employer matches dollar for dollar up to 5% plus puts another 7% of gross pay into my plan, too. Last year they put in about $24k plus my $16.5k. Once I max out I increase my contributions to my credit union from $200 per pay to $4 or $500 per pay.

[Plain Old Petunia]

Cawiau, I think 20% is a very healthy contribution. If you consistently contribute 20%, have a reasonable asset allocation, and avoid making foolish mistakes (such as going to cash after a large market drop), you will have no problem replacing your paycheck when it comes time to retire.

In 2010, I only managed 11% of my gross into retirement accounts, including my employer match. In previous years, I have done 15%. Even so, I am on track to have 80% of my pre-retirement income plus no mortgage by the time I retire. I feel that is reasonable.

[midjd]

I contribute 10% to the 403(b), another 10% to deferred comp, $5,000 to the ROTH... around ~27% of my gross income. Last year was my first year contributing (I'm 27) and I'm hoping to up my contributions a bit when DH starts working again.

DH is a FT student but was contributing 6% to his 401(k) and $5000 to his ROTH, about ~20% of his gross income. He had a 3% match on the 401(k) but didn't work there long enough to vest.

[TD2K]

Historically, I've always maxed out my 401k but I've cut back somewhat the last couple thinking it's better to pay the tax now while I think they are only going to go up in the future. I would definitely put in enough to get my company's full match.

[Deleted]

I'm still working on maxing out our Roths, lol. I won't start funding the 401k until we are paying more than 15% as our tax rate.

[cronewitch]

I used to put in the max since 2003 and am over 50 so it was 22K a year on about 55K of salary plus 6K to the ROTH. Now starting last year I put in about 11K plus 6K for the ROTH. So far this year I am doing 1K twice a month to the 401K and 4.5K so far to the ROTH. My cost of living is very low and I have other income so only need about 1K a month from my take home pay to pay mortgage and utilities and my other income pays food and gas and stuff. I also need to pay property taxes and all kinds of insurance so probably cost me 1,500 a month to live besides food and gas and stuff. I use my HELOC to cover cash flow when needed so will pay down some every month then might need to use it for taxes.

[LlamaLlamaDuck]

8% 401K contribution with a 4.5% employer match.

[cronewitch]

Part of the reason I front load is that, this way, if I decide or need to leave my job mid way through the year

Read more: notmsnmoney.proboards.com/index.cgi?board=finance&action=display&thread=3973&page=2#ixzz1F6HbrRO9

I always did that too, we all leave every job eventually. I am thinking of retiring in the spring of 2013 but you never know. If let go or unable to work before then like now I have more choices if I already contributed as much as I could. Since I am over 55 I could withdraw after leaving my job so if I put in say 10K out of 20K income and see my income is too low to use my itemized deductions I could withdraw as much as I needed but you can't put in more after you leave.

[mesquite77]

We max Roths and a 401k, and also contribute some to a 403b. Our retirement contributions are 25% of our salaries.

I've maxed my Roth every year they've been available, my wife started hers the next year. We maxed the 401k when my wife returned to work after taking a year off when our first child was born. So in the early years my $2k Roth contribution was about 25% of my annual earnings in school, it was up to 30% when she returned to work and now we're buying real estate and don't really want more retirement contributions (unless we need to continue to stay out of the 25% bracket).

[commuter]

We just increased our percentages in January to 20%, but we have yet to max out. We do max our Roth's.

[The J]

17% (plus another 3% goes into my pension). Not quite maxed out, but close.

[Deleted]

Feb 27, 2011 3:18:46 GMT -5 @daphne87 said:

I am still dreaming of the day we can afford to start contributing to retirement again.... If all goes well that will be later this year!

<<<crossing my fingers>>>

If I may ask, why did you stop to begin with?

[DVM gone riding]

I contribute 5% +3% match and then work on the Roth IRA too. I haven't yet managed to max anything. I am very impressed with you and your wife, esp with the SL and your wife's desire for more of the finer things in life.

[kdamron]

I put in about 13% and my firm puts in 3%. Between the two I am right at the match. I know, I know I should max it in my own...I also fully fund a Roth IRA.

[telephus44]

I put in 4% of my salary - enough to get the maximum match. DH puts in 14%. I am more concerned with maxing out my Roth IRA before I increase my 401K. DH actually has his set up to increase by 3% every year. He currently has a match of whatever his employer feels like according to some formula that they won't share and nothing is guaranteed.

[Deleted]

Feb 27, 2011 19:22:19 GMT -5 @daphne87 said:

Feb 27, 2011 18:01:00 GMT -5 TheHaitian said:

If I may ask, why did you stop to begin with?

Hi cawiau -- we cut back on retirement so we could save for a down payment on our house. DH was still contributing 15% of his pay (approximately 7% of our gross) to his 401k. But when he had to leave work in 2009 all retirement savings stopped.

In a perfect world we will start contributing again later this year!

Ok. Fingers crossed that you will be able to start contributing again later this year.