You might have already heard of the saying, ‘time flies when you’re having fun’. Needless to say, you should definitely think ahead before time passes you by and this means getting your hands on a fruitful retirement plan and working on your 401k contribution as soon as possible. During your retirement years, you will be able to live comfortably because of the fact that this plan allows you to do so. When you finally decide that it’s time to stop being an employee, you get to be worry-free in terms of financial matters.
By doing your homework about this particular plan, you’ll find out about certain pieces of information that you should always remember. An important aspect is the max 401k contribution per year since this will enable you to stay within the set limits. They say that in order for you to have a hefty amount during retirement, you should at least put in 15 percent of your monthly salary. A 401k plan is great because you will not have to do a thing since the amount, which you get to choose, automatically gets deposited into your account via a deduction from your monthly paycheck.
It gets even better because of the fact that most companies also offer a ‘match-up’ program wherein they will contribute the same amount or something close to what you put into your account. This means that you get free money and it is one of the reasons why so many find this retirement plan very rewarding. Remember that this said amount is part of the set limits in terms of your 401k max contribution per year. It’s important to take this into consideration because going beyond the limit means paying penalties. This year’s limit is $16,500 and for those who are 50 years and above, there’s an additional $5,500 for you to make use of.
Start doing your bit of research about 401k plans today and live happily during your retirement years.