The limit for 401(k) contributions will jump nearly 10% in 2023, but it's not always a good idea to max out your retirement investments

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To save the maximum 401(k) contribution amount in 2023, you would have to put aside $1,875 per month, or $865 per paycheck if you’re paid biweekly.

The federal government will allow you to save nearly 10% more for retirement in 2023. But it’s not likely that many will take advantage of the tax break. The simple reason: Most people don’t make enough money to save more from their paychecks.

You might not need to max out Not everyone needs that kind of money put away for retirement. The key is to save over time to eventually be able to replace your current income in the future, supplemented by Social Security. If you’re making $60,000 now, it wouldn’t make sense to try to save more than a third of your yearly income just because the government says you can.

Trend in deferral rate changes If there’s a takeaway from the new IRS limits, it’s that pushing up the limits every year does help. Retirement contributions have been indexed for inflation since 2001 for good reason, because legislators recognized that the amount you need in the future is constantly going up.

 

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Dewit

Dewit

The incredible inflation causes that to be very difficult. I suppose we could eat canned spaghetti as Biden suggested.

We are fkd either way.

kimberlykoury

What options for non-401k eligible?

You mean, we stop eating, go live under a tent on Broadway while stealing Wi-Fi from the liked of a Columbia University and dump all that money so one of your conceited comrades & crooks steal the money and we left with nothing? Question, where do we shower so we don’t stink?

If you're that rich already why would you be worried about 401k limits?

Why would you put all your eggs jn the stock market basket 🧺? You lost 30% in 2022 already

That should be wonderful news for those making $7.25 per hour. 'The federal minimum wage of $7.25 per hour hasn't budged since 2009, and 20 states have a minimum wage either equal to or below the federal level, making $7.25 their default baseline.' You're talking to the 1%

ok

Easy peasy

😆 🤣 iight

Joe Biden has made it impossible

Easy for a California tech worker. Impossible for everyone else

Me of the few benefits for us tax donkeys.

I put in 21% and my wife at 8% and I feel like it’s not enough.

That’s a lot

NEWS FOR IMMEDIATE RELEASE: The Santa Claus rally in the stock market has been canceled due to inflation - the cost of feeding the reindeer is way too expensive to justify flying around the world. . . ho ho ho...

I put 1k every 2 weeks and the market then takes 30%. 401K is a joke

It’s not hard

Best way to save or invest in today’s market is through the share economy. We share our homes, cars, pets.. it’s time we share our financial responsibility.

You would get to do that!

First year I maxed out. 💪

....that's 4/5s of my entire paycheck, how the hell am I gonna pay rent?

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