Comments on: Run Away 401k and IRA Contribution Limits http://www.moolanomy.com/18/run-away-401k-and-ira-contribution-limits/ Personal Finance. Investing. Wealth Building. Fri, 12 Mar 2010 18:53:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Spice http://www.moolanomy.com/18/run-away-401k-and-ira-contribution-limits/comment-page-1/#comment-25434 Spice Sun, 10 Jan 2010 04:39:13 +0000 http://www.moolanomy.com/18/funding-401k-and-ira-without-cash/#comment-25434 SCENARIO 1: My total compensation in 2009 is 119K of which I have received 103K and 16K invested in 401K (this does not include the employer match). Am i still elligible to invest in IRA for 2009? how much? SCENARIO 2: My total compensation in 2009 is 121K of which I have received 105K and 16K invested in 401K (this does not include the employer match). Am i still elligible to invest in IRA for 2009? how much? SCENARIO 1: My total compensation in 2009 is 119K of which I have received 103K and 16K invested in 401K (this does not include the employer match). Am i still elligible to invest in IRA for 2009? how much?

SCENARIO 2: My total compensation in 2009 is 121K of which I have received 105K and 16K invested in 401K (this does not include the employer match). Am i still elligible to invest in IRA for 2009? how much?

]]> By: Four Pillars http://www.moolanomy.com/18/run-away-401k-and-ira-contribution-limits/comment-page-1/#comment-14453 Four Pillars Fri, 25 Jul 2008 01:39:43 +0000 http://www.moolanomy.com/18/funding-401k-and-ira-without-cash/#comment-14453 I couldn't agree more - for most saving vehicles (regardless of the country) the reality is that the higher income people are usually the ones "maxing" out whereas the lower income earners rarely contribute anything. Great point as well by MIT Beta - the limits are fairly arbitrary and (in my opinion) have more to do with how much tax deferral the gov't will allow rather than anything to do with your personal financial situation. Mike I couldn’t agree more – for most saving vehicles (regardless of the country) the reality is that the higher income people are usually the ones “maxing” out whereas the lower income earners rarely contribute anything.

Great point as well by MIT Beta – the limits are fairly arbitrary and (in my opinion) have more to do with how much tax deferral the gov’t will allow rather than anything to do with your personal financial situation.

Mike

]]> By: Pinyo http://www.moolanomy.com/18/run-away-401k-and-ira-contribution-limits/comment-page-1/#comment-66 Pinyo Fri, 03 Aug 2007 15:18:25 +0000 http://www.moolanomy.com/18/funding-401k-and-ira-without-cash/#comment-66 MITBeta - welcome to Moolanomy. Excellent points! You're absolutely right that not everyone has 401k and IRA limit increasing is a good thing for many Americans. I also agree that maximizing these contribution may not be the right thing for everyone. MITBeta – welcome to Moolanomy. Excellent points! You’re absolutely right that not everyone has 401k and IRA limit increasing is a good thing for many Americans.

I also agree that maximizing these contribution may not be the right thing for everyone.

]]> By: MITBeta http://www.moolanomy.com/18/run-away-401k-and-ira-contribution-limits/comment-page-1/#comment-65 MITBeta Fri, 03 Aug 2007 14:40:35 +0000 http://www.moolanomy.com/18/funding-401k-and-ira-without-cash/#comment-65 You should only worry about maximizing these contributions if you can afford to do so. Your goals should include a percentage of you income that you will contribute to various investment vehicles. I, for one, am happy that these limits are rising because I don't have access to 401k, and the IRA limits for a couple are less than 10% of my income at present. If my goal is to save 10% for retirement, I have to find other, non-tax advantaged ways to do that. Next year, as the IRA limit goes to $5k per person, I will come closer to my 10% and have to put less money in taxable accounts. You should only worry about maximizing these contributions if you can afford to do so. Your goals should include a percentage of you income that you will contribute to various investment vehicles.

I, for one, am happy that these limits are rising because I don’t have access to 401k, and the IRA limits for a couple are less than 10% of my income at present. If my goal is to save 10% for retirement, I have to find other, non-tax advantaged ways to do that. Next year, as the IRA limit goes to $5k per person, I will come closer to my 10% and have to put less money in taxable accounts.

]]>