Comments on: Are you maxing out your 401K contributions? http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/ News, Tips and Resources for Online Bargain Hunters Mon, 01 Dec 2008 23:41:15 +0000 http://wordpress.org/?v=2.6.2 By: Personal Finance Bloggers Share Their Very Best Money Saving Tips http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-29142 Personal Finance Bloggers Share Their Very Best Money Saving Tips Sun, 03 Feb 2008 21:06:38 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-29142 [...] Pro Bargain Hunter suggests maxing-out your 401k. [...] [...] Pro Bargain Hunter suggests maxing-out your 401k. [...]

]]> By: » Weekly Roundup, Pumpkin Picking Edition on Consumerism Commentary: A Personal Finance Blog http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27925 » Weekly Roundup, Pumpkin Picking Edition on Consumerism Commentary: A Personal Finance Blog Sat, 20 Oct 2007 20:14:45 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27925 [...] Pro Bargain Hunter: Are You Maxing Out Your 401(k) Contributions [...] [...] Pro Bargain Hunter: Are You Maxing Out Your 401(k) Contributions [...]

]]> By: Yan http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27913 Yan Thu, 18 Oct 2007 20:19:54 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27913 By the way, <a href="http://www.mymoneyblog.com/archives/2007/10/what-percentage-of-my-income-should-i-contribute-to-a-401k-plan.html" rel="nofollow" rel="nofollow">here</a> are some interesting thoughts on how much you should contribute to your 401K plan. Here is my favorite part: "start at a high amount (20%? 25%?), and keep decreasing it until your take-home pay is a manageable amount" By the way, here are some interesting thoughts on how much you should contribute to your 401K plan. Here is my favorite part: “start at a high amount (20%? 25%?), and keep decreasing it until your take-home pay is a manageable amount”

]]> By: Yan http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27892 Yan Tue, 16 Oct 2007 16:02:10 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27892 <strong>Russ A:</strong> I always believed my income at retirement would be lower and my tax bracket different so I am better off deferring paying my taxes until I retire. Being able to avoid tax on my income from investments is something I have not given much thought yet. Thanks for your comment. <strong>Alex:</strong> I am a home owner and being one does help a lot with my taxes. If I am able to pull this off I might end up increasing my 401K contributions and opening a Roth IRA as well. Will have a better idea closer to the end of the year... Russ A:

I always believed my income at retirement would be lower and my tax bracket different so I am better off deferring paying my taxes until I retire. Being able to avoid tax on my income from investments is something I have not given much thought yet. Thanks for your comment.

Alex:

I am a home owner and being one does help a lot with my taxes. If I am able to pull this off I might end up increasing my 401K contributions and opening a Roth IRA as well. Will have a better idea closer to the end of the year…

]]> By: Alex http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27891 Alex Tue, 16 Oct 2007 15:38:30 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27891 Although I agree that the Roth IRA is a great idea for retirement saving, I agree with you Russ that it doesn't fit his current goal of avoiding Uncle Sam. Yan, you could look into setting up a traditional IRA which would possibly help you dodge the higher tax bracket this year, but you will end up having to pay taxes on that money eventually. I personally get the biggest tax savings from owning a house. All that interest and property taxes helps a ton with the tax time blues. Although I agree that the Roth IRA is a great idea for retirement saving, I agree with you Russ that it doesn’t fit his current goal of avoiding Uncle Sam. Yan, you could look into setting up a traditional IRA which would possibly help you dodge the higher tax bracket this year, but you will end up having to pay taxes on that money eventually. I personally get the biggest tax savings from owning a house. All that interest and property taxes helps a ton with the tax time blues.

]]> By: Russ A http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27890 Russ A Tue, 16 Oct 2007 13:28:58 +0000 http://probargainhunter.com/2007/10/15/are-you-maxing-out-your-401k-contributions/#comment-27890 I would think it's ideal to max out your 401K, but only up to the amount your employer matches. At that point, I'd set up a Roth IRA. It does use post-tax money, which isn't what you're looking to do, but when you withdraw it, you don't pay any taxes on the income you've earned from stellar stock picks and what not. I would think it’s ideal to max out your 401K, but only up to the amount your employer matches.

At that point, I’d set up a Roth IRA. It does use post-tax money, which isn’t what you’re looking to do, but when you withdraw it, you don’t pay any taxes on the income you’ve earned from stellar stock picks and what not.

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