<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > 401k maxed for the year

401k maxed for the year

November 17th, 2021 at 02:18 am

I just downloaded this week's paycheck. I contributed the final $740.78 needed to max my 401k at 26K for 2021. This is the third year I've done so. It's also possibly the last since as of 11/28 I will drop to part time. I don't think I'll be able to contribute that much going forward for however much longer I work (and the max rises for 2022).

Still, I'm happy to have been able to put in what I did. That account now stands at about $215,000 and I won't be touching it for at least a few more years so it can continue to grow. And even if I can't put in the max, I do want to keep contributing as much as I can for as long as I can.

Posted in Personal Finance, Work/Career | 4 Comments »

4 Responses to “401k maxed for the year”

  1. LifeBalance Says:
    November 17th, 2021 at 02:50 pm 1637160654
    1637160654

    I just hit my max as well. In addition to the satisfaction of having the account funded, I'm going to feel like I got a raise when I receive the next paycheck. A temporary one though because it'll start contributions again come January.

  2. LivingAlmostLarge Says:
    November 17th, 2021 at 08:29 pm 1637180989
    1637180989

    that's cool! Congrats!

  3. disneysteve Says:
    November 19th, 2021 at 12:03 am 1637280238
    1637280238

    Joe, when I go part time, my income drops by 1/3. I don't know if I'll be able to continue to contribute 26K (or 27K for 2022 I think) and still have enough take home pay to cover our spending. I might. I just have to see how the numbers play out. Not only will my income be lower but our healthcare premiums will be a little higher. My continuing education stipend will also be 1/3 smaller so I may have some increased out of pocket costs there, too.

  4. disneysteve Says:
    November 19th, 2021 at 03:05 pm 1637334352
    1637334352

    Joe, I've been thinking about what you said. You may be right. Money is fungible. It might make sense to max the 401k and if we are short on spending money, draw funds from elsewhere. We have plenty of liquid funds in taxable accounts. I never really thought about that.

    Thanks!

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]