Roth 401K
I recently dropped the percentage of withdrawel to my 401k to accelerate the payment of a debt from emergency work that was done on my house. I went from 12% to 3%…..My plan is to go back to the 12% when I pay the debt down to 50% paid, which should be next year. I currently earn 76k do you think this is a wise move? And is the yearly max for Roth 401K different at all employers or is the max investment amount universal and what is the amount if so? My company doesn’t match a nickel…
Terry Says
I think you are doing some smart financial planning — Definitely get back on track with your 40l(k) as soon as possible, because this is the base on which future growth will occur. The annual maximum 40l(k) contribution is set by law. For 2020, it will be $19,500 — no matter what employer.
It’s a bit surprising that your employer doesn’t match any of your contributions. You might want to investigate the fees that you are paying, since the employer clearly isn’t watching other trends. Here’s how to check up on your plan Employers are required to disclose all 40l(k) plan fees and costs annually. At www.EmployeeFiduciary.com, you can benchmark your company’s plan costs to see if they are reasonable. If not, get your co-workers together to demand a lower cost plan. If that’s the case, it might be a good time to bring up the subject of a matching contribution. (Or look for a job with better benefits!)
