Comments on: Don’t worry about not being able to contribute more to your 401(k)

By: mbhunter

mbhunter — Wed, 21 Oct 2009 03:37:50 +0000

JoeTaxpayer: Not necessarily too much savings, but too much contribution to the 401(k). You can save in other vehicles besides the 401(k).

By: JoeTaxpayer

JoeTaxpayer — Wed, 21 Oct 2009 03:11:49 +0000

Yes, 5K for you or 6K for those 50 or older in 2010.

By: JB

JB — Wed, 21 Oct 2009 03:08:19 +0000

Any news on the ROTH IRA contribution limits, is that staying at $5000? Thanks

By: GE Miller

GE Miller — Tue, 20 Oct 2009 23:00:29 +0000

This is great news. I plan on maxing out next year like last. I was worried the limit would be dropped and was not expecting an increase. So, I’ll take it!

By: mapgirl

mapgirl — Tue, 20 Oct 2009 12:19:06 +0000

The question of wanting to be taxed now vs later is also a question of the following:
1. Do you expect to be making more now or later?
2. Do you think your tax bracket will be the same, higher or lower in the future?

For me, I think that I will be making less in the future in retirement. I also guess that my bracket will be lower than it currently is, or else, that taxes in the future will be higher for everyone. (Just think of all the debt our government has issued!)

Luckily for me, the question is a no-brainer since I’ve yet to max out my 401k. I should be doing that first.

By: JoeTaxpayer

JoeTaxpayer — Tue, 20 Oct 2009 12:08:20 +0000

As one who has been depositing to my 401(k) for 26 yrs, I know that the increase each year is not guaranteed. $16,500 is ok for me. $22,500 for my wife.
Your last line intrigues me. Too much savings? An AARP study showed that the second 20% (those between the top 40% and top 20%) of boomers are projected to have an average balance of just over $150K in retirement accounts. Hardly anything to worry about as being ‘too much’.