401k max becomes $15,500 on Jan 1
#1
401k max becomes $15,500 on Jan 1
just a friendly reminder from TM
if you are age 50 or older, you may also be eligible to make "catch-up 401k contributions" in addition to your regular 401k limits — IF your employer allows them
if you are age 50 or older, you may also be eligible to make "catch-up 401k contributions" in addition to your regular 401k limits — IF your employer allows them
#5
IRA max for 2007 is $4,000, regardless of whether it's Roth or not. Goes up to $5,000 in 2008. Post-2008, the max will raise in increments of $500 adjusted for cost of living.
Last edited by Tech Maven; 12-24-2006 at 08:33 AM. Reason: LAf's catching my stupid error
#9
Good post - ALWAYS pay yourself first!
I base Pre-Tax 401K payments on the monthly guarantee and then figure out the percentage required to achieve the 401K limit. Since I always fly more than guarantee, I reach the threshold by the end of November. This leaves a nice little bump in the December paycheck for Christmas or whatever.
By the end of the year - I've maxed the 401K and have a little extra for "the season". Best of all, the 401K contribution comes out of pre-tax dollars so the federal tax liability is reduced and that means paying LESS tax.
Another benefit to look at is Medical and Child care flex-spending, using this you can reduce taxable income by another $5000 per year (depending on your plan).
Here's to prosperity to everyone on the boards in 2007, and paying yourself is a good head start!
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