First thing first:
If you have a 401(k) plan sponsored by your workplace, you should try and take maximum advantage of it.Limits
In 2014, IRS allowed upto $17,500 to be invested in a 401k if you are upto 49 year old.In 2014, IRS allows upto $18,000 to be invested in a 401k if you are upto 49 year old.
See following for more info: https://401k.fidelity.com/public/content/401k/Home/VPContributionLimits
See following for much more detailed breakdown of IRS rules:
http://www.irs.gov/Retirement-Plans/401k-Plans-Deferrals-and-matching-when-compensation-exceeds-the-annual-limit
Review your contribution
- Take a moment to review how much you are investing into your 401k.
- Identify if you are comfortable with contribution you are making.
- Identify expected rate of incoming you may be able to achieve at the time of retirement with your current contribution level.
- Identify changes you can achieve in your lifestyle that may be more financially healthy for you in long term.
More to come: How to maximize your employer match to 401k.
No comments:
Post a Comment