how much money should i put in my 401k?

Question

Im 19 years old. How much money from my check should i put onto my 401k?

Answer 1

As much as you can afford to...

Answer 2

Roth limit was 5k not 4k. And the ONLY reason you contribute to a ROTH is for the diversity of the investment. And the benefit of it falls apart if you don't leave the money in there for many years. So, if you think you're a person who is going to tap into it because it's easy to get to and it's non-taxable then you should avoid this investment tool. Remember, you're investing 25%-30% less into the Roth then you would be into your 401k (unless of course you are maxing your 401k at $15,500.00)

Answer 3

I currently put 9% in my 401K. My company matches my contributions 50 cents on the dollar up to 6%. It's pretaxed money, so you really don't notice much of a drop in your pay. Every time I get a raise, I up my contribution.

Answer 4

Assuming you are making less than $99,000 for 2007 you should put in the amount the company will match into your 401k then if you can afford it put $4,000 into a Roth IRA and then put as much more that you can afford into the 401k.

Answer 5

I think you should put as much as you can afford (or even more than you think you can afford). At your age, you have the huge benefit of time on your side -- the more you save now, the greater your retirement nest egg will be.

Also, you should augment whatever amount you start with everytime you get a raise, until you hit the maximum amount allowed by law. You'll be glad you did.

Answer 6

you do not realize tax brackets. the in basic terms volume that you pay the 25% on is the money that are over the bracket reduce. It would not impact something else of your earnings. for example in the experience that your advance presented your taxable earnings $100 over the bracket reduce, you would pay the better fee in basic terms on that $100. because the tax fee is not in any respect 100%, you in a large number of cases get extra by making extra. yet to reply to your question, certain a contribution to a 401k lowers your taxable earnings.

Answer 7

I suggest that you put the maximum in. While retirement seems a long time away, the amount of funds one will need is great. Most do not have enough saved for retirement. As lifespans increase there is a need for more retirement savings. At minimum put in the amount that your firm will match. That will double your money.

Answer 8

vtxrider has the correct answer to this.