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OPTIMIZE YOUR WORK RETIREMENT PLAN, 401(k), 403(b), 457, ETC

  • Joe Jennings
  • Aug 9, 2022
  • 1 min read

Updated: Sep 20, 2022



Start with being mindful of your employer’s company match and use that as your floor contribution amount. For example, if your company uses a common safe harbor match of 100% of the first 3% of each employee’s contribution and 50% of the next 2%, this means if you defer 5% of your salary, the company will fund 4% of your pay. Combined you will have 9% of your gross pay being funded for your retirement living expenses. If your cash flow does not allow you to maximize the company match, make it a goal to get there. Consider increasing your contribution rate 1% - 2% per year. Many 401(k) providers allow you to automate this by selecting the auto increase feature.


For 2022 you can contribute up to $20,500. Taxpayers age 50 (at any time during the year) or older can take advantage of the additional catch-up contribution of up to $6,500.




 
 
 

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