Sam_Julier
$50 Site Donor 2023
I agree with your statement. It is actuarily correct.
However, I have yet to hear anyone complain that they had too much money in retirement. 😉
How many in pre-retirement make catch-up contributions to 401K
- Thread starter Donald
- Start date
However, I have yet to hear anyone complain that they had too much money in retirement. 😉
?? Not sure what you are saying here??
I’m guessing it would make for a boring podcast/video, but I really would like to see this scenario played out, where someone made a “bad choice” in where the parked their money. And then suffered in retirement from undue taxes.
Only thing is, it really needs to have real numbers put on it. I’ve always assume that people with this “problem” make like seven figures a year, or some high level, and thus have written it off.
Only thing is, it really needs to have real numbers put on it. I’ve always assume that people with this “problem” make like seven figures a year, or some high level, and thus have written it off.
I’m 99% sure he missed a word—I’m assuming he meant, “it’s a shame that there is a contribution limit…”.
Don't get me wrong, I'd likely enjoy the higher limits but at what point does it move from a savings vehicle for retirement, to a tax shelter.
If a 25 year old maxed out at today's limits (not including catch up contributions) on their IRA and 401k and the limits didn't increase over time, with a 8% return/year, they would have $8MM at 65. Don't start savings until 35 and max out every year, 8% return/year, $3.5MM at 65.
I like Roths because of the tax free growth and the lack of RMD, but for me as someone that maxes their accounts, I'd purely be using it for the tax advantage and wealth growth, not as a need for retirement. At some point I can just suck it up and contribute to the brokerage account.
Sam_Julier
$50 Site Donor 2023
Did the same for my kids.
Contribution limits. Sorry.
I probably wrote this somewhere before but when all the Roth type stuff came about it was too late for me. The company I was working for did not offer it at first and I was too committed to regular 401K and my income was too high. Plus the businesses kicked me into self employment taxes.
Not complaining - I will just pay my taxes on the withdrawals. My taxable income is controllable and I have municipal bonds held in my taxable accounts.
I get my first social security check Feb 22. Wife is firing up for SS and her income is better than taking the spousal benefits.
But if anyone wants to send me $200,000 for an RV I’m open to that too.
Not complaining - I will just pay my taxes on the withdrawals. My taxable income is controllable and I have municipal bonds held in my taxable accounts.
I get my first social security check Feb 22. Wife is firing up for SS and her income is better than taking the spousal benefits.
But if anyone wants to send me $200,000 for an RV I’m open to that too.
I wish you all good luck in your investing. You can also invest some of your after tax monies as well. Go for it! You're welcome.
Gonna do like John Madden and take a Bus or RV and travel North America? I'd ride along just for the sight seeing. Going to the Honda factory or a tour to the Crown Royal Distillery would be neat. Like to see the Clydesdale Horses at Budweiser factory and see someone really green like Eureka Springs. Finding a Furrs cafeteria would be okay too.
Catch up contribution (50 and older) should be an extra $15K for both IRA and 401K, 403B, Thrift Savings.
