Comments on: Ten Minute Tip: Join and Contribute to Your Company’s 401K http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: LDE http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html/comment-page-1#comment-220189 LDE Mon, 25 Feb 2008 22:21:50 +0000 http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html#comment-220189 My employer does not have a 401k plan at all and I am a w-2 employee. Is there anything I can do to set myself up for a retirement plan? Can I set myself up with a SEP and request my employer to take money out of my paycheck (pre-tax) and fund my SEP so that I'm doing something for myself? thanks, LDE My employer does not have a 401k plan at all and I am a w-2 employee. Is there anything I can do to set myself up for a retirement plan? Can I set myself up with a SEP and request my employer to take money out of my paycheck (pre-tax) and fund my SEP so that I’m doing something for myself?

thanks,
LDE

]]> By: rstlne http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html/comment-page-1#comment-168357 rstlne Wed, 17 Oct 2007 17:06:27 +0000 http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html#comment-168357 You need to contribute enough to your 401K to get the most employer matching contribution possible. To do otherwise would be to leave money on the table. Beyond that, I'm not sure the 401K is such a big deal because you'll have to pay taxes on withdrawals at the end anyway. If, however, you're on the verge of getting disqualified for certain tax credits because you're hitting income limits on those tax credits, bumping up your 401K can help you stay within range. Aside from those considerations, I would suggest the following scheme: 1. Contribute to your 401K up to maximum employer match. 2. Contribute to your Roth IRA up to your IRA limit. 3. Contribute to your 401K up to the annual maximum. 4. Save the rest in taxable accounts. Use index funds or ETFs or hold stocks for the long term for tax efficiency. You need to contribute enough to your 401K to get the most employer matching contribution possible. To do otherwise would be to leave money on the table. Beyond that, I’m not sure the 401K is such a big deal because you’ll have to pay taxes on withdrawals at the end anyway. If, however, you’re on the verge of getting disqualified for certain tax credits because you’re hitting income limits on those tax credits, bumping up your 401K can help you stay within range.

Aside from those considerations, I would suggest the following scheme:

1. Contribute to your 401K up to maximum employer match.
2. Contribute to your Roth IRA up to your IRA limit.
3. Contribute to your 401K up to the annual maximum.
4. Save the rest in taxable accounts. Use index funds or ETFs or hold stocks for the long term for tax efficiency.

]]> By: thomas http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html/comment-page-1#comment-168027 thomas Wed, 17 Oct 2007 03:21:11 +0000 http://www.bargaineering.com/articles/ten-minute-tip-join-and-contribute-to-your-companys-401k.html#comment-168027 If you don't contribute to your company's 401k to get free money, you are an idiot. There really is no other way to put it. If you don’t contribute to your company’s 401k to get free money, you are an idiot. There really is no other way to put it.

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