I need advice on 401K

[UpstateNYUPSer(Ret)]

Then you have to find a way to put at least 10% away. Doing this pretax will be much less of a hit to your take home pay than post tax.


Our pensions are not in great shape for the most part nationwide and SS is not either. Make some sacrifices now and you will come back and thank us all in 15-20 years.

He can adjust his W-4 to keep
his take home pay close to where it was.

 

[Brownslave688]

He can adjust his W-4 to keep
his take home pay close to where it was.

And end up paying? Lol


I think we all can agree the op needs to get serious about cutting some costs and saving for retirement.

 

[UpstateNYUPSer(Ret)]

And end up paying? Lol


I think we all can agree the op needs to get serious about cutting some costs and saving for retirement.

The 401k tax deduction negates the W-4 adjustment.

 

[jjolar]

I've increased by a couple percent, not much because I need more take home pay due to bills & crap. Thanks for your help.

Sounds like you may be over extending yourself financially. Vehicle payments, hobby expenses, etc. Once I went full time (at 52) last year, it was apparent I need to get out of debt and get some money saved. I drive older cars that don't require payments or expensive repair costs, and paid everything off, except mortage, and I'm working on that now. I'm up to 17% on my 401K, and after I get my next raise, I'll boost it again. YOUR MONEY IS THE ONLY MONEY YOU CAN RELY ON WHEN YOU LEAVE! MAKE THE MOST OF IT. That big fancy truck will have no value in ten years. SAVE brother, you will not regret it when you're out, but you WILL if you don't!

 

[olroadbeech]

do you have to close out/ roll over your 401k when you leave the company? that's something I did not look into.

 

[olroadbeech]

Guess I seem like an idiot on here, but I appreciate your help & advice. I'm still young at 40, with 21 years service within the company, I'd go up to 10% man but I don't want much more deducted from my paycheck ya know.

you are not an idiot. you can go on the website and look around the 401k site. it will show you past performances of funds and has a lot of good info. also you can call with some questions and they may be able to help. take a couple hours .

remember, for every dollar you put in, you save on your taxes in that year. you pay tax when you retire and start to take money out but at a lower tax rate.

I started with 10 % and raised it to the max within a couple years and im glad I did. I saved over 3500 a year just in taxes. what I have in my 401k account will give me income equal to my pension every month so we are very happy about that.

do some more homework. it will pay you big money in the longrun.

 

[rod]

I was going to suggest 10% but the OP is already having a hard time paying his bills and contributing 3%.

He also doesn't have the funds nor does he need to hire a financial adviser. He should be able to learn the basics through the tutorial on our 401k website.

I don't see anything on here about him having a hard time paying his bills---just that he wants more take home pay. As usual you are trying to come off as "the expert" on something you aren't.

 

[olroadbeech]

Guess I seem like an idiot on here, but I appreciate your help & advice. I'm still young at 40, with 21 years service within the company, I'd go up to 10% man but I don't want much more deducted from my paycheck ya know.

double post.

 

[UpstateNYUPSer(Ret)]

do you have to close out/ roll over your 401k when you leave the company? that's something I did not look into.

Nope.

 

[IVE GOTTA PACKAGE 4U]

do you have to close out/ roll over your 401k when you leave the company? that's something I did not look into.

No you don't. But if you have money in the ROTH,you probably should.

 

[Brownslave688]

No you don't. But if you have money in the ROTH,you probably should.

Y

 

[IVE GOTTA PACKAGE 4U]

Y

Because when you reach age 70 1/2 you will be forced to take a distribution from your 401k. Including your ROTH portion.

 

[Brownslave688]

Because when you reach age 70 1/2 you will be forced to take a distribution from your 401k. Including your ROTH portion.

Ahh ok.




I ain't planning on leaving behind anyway. Lol

 

[Brownslave688]

My wife works hard for her money and I plan on spending it. Lol

 

[IVE GOTTA PACKAGE 4U]

Ahh ok.




I ain't planning on leaving behind anyway. Lol

Alot of people don't know that rule. I plan on taking any ROTH money last, unless I need some to to save me on paying taxes on my S.S.

 

[upschuck]

Because when you reach age 70 1/2 you will be forced to take a distribution from your 401k. Including your ROTH portion.

Couldn't you roll it over into a Roth IRA, no distributions required there.

 

[Brownslave688]

Alot of people don't know that rule. I plan on taking any ROTH money last, unless I need some to to save me on paying taxes on my S.S.

I was thinking fees. Which I know our 401k is very low.


I'm not even halfway to 70 so don't think about that much.

 

[IVE GOTTA PACKAGE 4U]

Couldn't you roll it over into a Roth IRA, no distributions required there.

Yes you can. I was just answering her question, do I need to roll my 401k over

 

[upschuck]

Yes you can. I was just answering her question, do I need to roll my 401k over

Carry on then.

 

[upschuck]

I was thinking fees. Which I know our 401k is very low.


I'm not even halfway to 70 so don't think about that much.

It will be here before you know it.