What is a good percentage of salary to put into a 401K?

Answer 1

Put in the percentage that maxes out the company match. Free money is good.

After that, put your money into a Roth IRA (if you qualify for it). Tax-free growth is good.

If you max out the Roth IRA, go back to your 401(k) and put money into that. Tax-deferred growth is good, but not as good as free money and tax-free growth.

While you're doing all that, you have to also build an emergency fund of 3-6 months *expenses.* You don't want an unexpected emergency to undo all that you're striving for. Also, you need to make sure that you pay off all your short-term high-interest debt. It makes no sense to gain 10% a year in savings while paying out 18% in interest. If you have credit card debt, pay it off and stay out of debt.

Good luck!

Answer 2

As much as you can is the standard answer but you should only put in what you can afford to do. Personally, I like to put in the percentage that mexes out the company match. For example, I was at a company that matched up to 1/2 of 6%. What that means is that if I put in 4%, they will put in 2%. If I do 6%, they will do 3%. If I do 15%, they will still only do 3%. So at that job, I did 6%. I would have done more but I did not have any leftover money after paying my monthly bills so I kept it at 6%.

Answer 3

First of all, what's the maximum percentage your employer will match? Also, what is the match? $0.60 to the dollar? Dollar for dollar? And what is the maximum percentage you can contribute? Ideally the best way to use your money is to put at least the maximum your company will match because when you're vested, you'll have that much extra money. If you can't contribute that much, put in as much as you can. With mine, I can contribute up to 25% of my paycheck. My company matches up to 12%. But as I can't afford to put in that much, I contribute a bare minimum of 5%. And believe me, it does add up quick!

Answer 4

Aim for 6% if you can. The older you get, the more you will want to increase your contributions. Many employers will match up to 6% so that's a great investment for your retirement.

Answer 5

most of the folks already said it..

put as much in as your company matches.. for example if they match 6%.. put in that six percent (at the least)

i would put in as much as your company lets you though.. for instance my company let's me put 30%.. that's how much i'm contributing at the moment.. i might lower it from time to time.. because i might need the extra income on a certain month.. but i ALWAYS put a minimum of at least 10%

another advantage of putting the max into 401k is that your taxable income is lower.. putting you in a lower tax bracket.. which means more $$ when you get your refund

Answer 6

I put in 7%, my employer matches 3%, so my total is 10%, but my accountant says I should be putting more in - I just can't afford it.

Answer 7

You absolutely must put in as much as your employer will match. Otherwise it's like throwing money in the trash. I put in 12-14%. I think as much as you possibly can.

Answer 8

The max of what your employer matches, unless the investment is ONLY in company stock. That might be puttin all your eggs in one basket.

Answer 9

It really all depends on how much you can afford to contribute. I'd start with a low amount, say 5% and work my way up.

Answer 10

Just go with 6%