I used to have a 401 K through the company I worked for before and turned it into a rollover IRA when I left. I am 22 and would like to know what percentage of my paycheck would be ideal to deposit into my rollover IRA account. The company that I work for does not offer a 401K or matching.
2007-11-13 08:57:23 · 6 answers · asked by wondering 2 in Business & Finance ➔ Personal Finance
$4000 this year and you'll have up til 4/15/08 to contribute for 07. But try to contribute the full amount for 07 ASAP and then start on your 08 contribution which will allow you to contribute $5000.
2007-11-13 09:15:12 · answer #1 · answered by voluntarheel 5 · 0⤊ 0⤋
10-15% is standard, 15% is ideal. The more the better, especially at your age - the more you put away now, the longer it has a chance to grow, and the less you'll have to save in the long run.
If your expenses will allow you to do so, save the maximum you can for your tax bracket. It will make a huge difference down the road.
2007-11-13 17:12:19 · answer #2 · answered by teresathegreat 7 · 0⤊ 0⤋
If it's now an IRA, there are maximum amounts you can contribute tax-exempt. At your age, you can contribute up to $4000 this year and $5000 next year. So if you can, make the maximum contribution up to that level.
2007-11-13 17:03:03 · answer #3 · answered by wynterwood 3 · 2⤊ 0⤋
The IRA is a good idea but you need to decide whether to use a conventional (pretax) IRA or a Roth (aftertax) IRA. I think, at your age, you should opt for the Roth. In the long term, it will give you greater return. See www.ira.com for more info.
2007-11-13 17:22:04 · answer #4 · answered by npk 7 · 1⤊ 0⤋
Ideally, as much as you can afford.
However, since you are starting early (Good for you!), if you could do 10% you'd be doing great!
2007-11-13 17:18:39 · answer #5 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
25%
2007-11-13 17:04:38 · answer #6 · answered by matthew W 2 · 0⤊ 0⤋