at what age can you put an extra amount away into retirement fund and what is the maximum percentage you can deposit
2006-11-12 08:21:13 · 4 answers · asked by Ford Prefect 7 in Business & Finance ➔ Personal Finance
I never heard of a minimum age, but as far as a percentage I think if varies with the type of account, and your income, and type of income. So you need to be more specific. For example I think in an 401k you are limited to 15%, unless you are over 50 or maybe 55, then it is something like 20% of earned income. Also may be an absolute $ limit.
2006-11-12 08:27:34 · answer #1 · answered by victorschool1 5 · 0⤊ 0⤋
If you're 50 or older, your limit for deposit into an IRA each year goes up from $4000 to $5000. It's not a percentage - it's a flat amount.
For a 401K, depends on your employer's plan, so see your HR department.
2006-11-12 18:41:23 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The age makes no difference. You can start putting money into an IRA, either regular or Roth, as early as you want. It used to be you were limited to I think $2000./year but the rules have changed recently and the amount is higher. If you have a job who's employer allows you to put pre-tax money into a 401k program you can start contributing as soon as the rules allow.
2006-11-12 16:27:43 · answer #3 · answered by 91106 3 · 0⤊ 0⤋
50 years of age for catch-up contributions. You can read more at this CPA site: http://www.kelanroycpa.com/krcpa/2002_Contribution_Limits.htm
2006-11-14 13:40:23 · answer #4 · answered by Steve R 6 · 0⤊ 0⤋