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How Much Should I Contribute to My 401(k)?
  + stars: | 2023-10-09 | by ( Tanza Loudenback | ) www.wsj.com   time to read: +10 min
401(k) contribution limits 2023 For 2023 Projected 2024 Maximum contribution $22,500 $23,000 Catch-up contribution $7,500 $7,500 IRS, MercerMost 401(k) contributions, including employer matches, go into a pretax, or traditional, 401(k) account. Some employers offer a Roth 401(k), which is essentially the inverse—but more on that later. To ensure you’re getting the full benefit of a 401(k) match, find out your employer’s matching formula and the maximum they could contribute. Should I contribute to a traditional 401(k) or a Roth 401(k)? In general, it makes sense to contribute to a Roth account when you have low or moderate income.
Persons: you’ve, Sam, , Derek Pszenny, , Don’t, Marcy Keckler, Pszenny, ” Pszenny, You’ll, you’re, ” Keckler, Max, Roth IRAs, Roth, IRAs aren’t, IRAs, Keckler Organizations: Carolina Wealth Management, Mercer, Social Security, Ameriprise, Vanguard Locations: North Caroline
Keeping your money in the wrong place has some easy tells: Your money won't grow on its own, and you don't have cash on hand for an emergency. If money comes into your checking account and stays there, you're probably not making the most of your money. If your emergency fund isn't full and in a separate account, your money isn't in the right place. You don't have goals you're working towardsIf you don't have money goals you're working towards, there's a good chance you're keeping your money in the wrong place. Your money isn't growing on its ownThe reason people invest, for retirement or otherwise, is to keep their money growing over the long term.
Persons: , Marci Bair, It's, Monica Sipes, Marcy Keckler, it's, you'll Organizations: Service, Wealth Advisors, Ameriprise
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