Wahoo! I've met my 401(k) limit

[InDebtInDC]

After scrunching hard all year, as of last Tuesday I made my last chunk of 401(k) contribution. From now until December I'll just be making the minimum 5% to get the matching. It looks like I'll meet my $15,500 limit this year.

Originally I was planning on balancing it out and putting an equal amount in from each pay check, but I was trying hard to put in more each month so I can get my balance up more quickly.

I don't really care what the market is doing. It just feels better to lift the burden.

I think the forums helped motivate me to do it. The last 3 paychecks I put in 99%, 99%, and 61%.


Thank you to the regulars. Your words inspire me.

[disneysteve]

CONGRATULATIONS!! That's great. I wish I had a 401K that I could do the same with.

I don't really care what the market is doing.

This is such an important statement. The market goes up. The market goes down. Sometimes the market goes nowhere. What matters is that you keep investing month after month, year after year. Only by being in the market, in good times and bad, will your money grow enough to provide a comfortable retirement in the future.

[FrugalFish]

WTG! That is incredibly awesome!

[sweeps]

That was smart to work it out so you could still get the company match the rest of the year.

[Hedy]

Congrats!

[simpleyme]

fantastic!

[Broken Arrow]

Hey congrats! I won't be able to do it this year, but I'll be able to contribute max next year.

[InDebtInDC]

Thanks for the encouragement.

That was smart to work it out so you could still get the company match the rest of the year.

I could have stuffed another chunk in there and reach $15,500 this month, but I calculated that if they matched 5% of my salary, I would need to earn almost 70-80% in my investments to break even with the matching.

There's no way anything they offer me could return 70-80% in 3 months. So I chose the matching.

[sweeps]

I could have stuffed another chunk in there and reach $15,500 this month, but I calculated that if they matched 5% of my salary, I would need to earn almost 70-80% in my investments to break even with the matching.

There's no way anything they offer me could return 70-80% in 3 months. So I chose the matching.

Agreed. In fact, I leave myself some extra buffer because one year I worked it out with what I thought would hit the max perfectly at the end of the year. Turns out the company gave everyone a surprise year-end bonus. I missed out on the company match of that bonus because my last regular paycheck put me at the ceiling.

[InDebtInDC]

Agreed. In fact, I leave myself some extra buffer because one year I worked it out with what I thought would hit the max perfectly at the end of the year. Turns out the company gave everyone a surprise year-end bonus. I missed out on the company match of that bonus because my last regular paycheck put me at the ceiling.

Good point. I agree. My contribution can only come from base salary so things like bonuses don't affect the matching.

The one thing I do try to account for is promotions because the base salary increases. I contribute 5% at the next promotion salary just in case by some miracle they decide to give it to me early.


Plus stuffing too much money in too early would hurt cashflow as well. I've been hurting the past month but it'll get better for the rest of the year.

[LivingAlmostLarge]

I try to evenly distribute it because when it hits the ceiling they stop taking out and i hate missing the match.

[kv968]

Congrats and good work with still getting the company match for the rest of the year. That return will be more than the market can return you in the same amount of time.

[rooskers]

WTG!!!!

I am excited too because my 403b (nonprofit 401k) has finally hit six figures. Actually it is around $120,000 depending on the market for the day. My goal was to break the six figures by the time I was 30 but because of my aggresive saving for retirement I was able to do it a year early.

[InDebtInDC]

WTG!!!!

I am excited too because my 403b (nonprofit 401k) has finally hit six figures. Actually it is around $120,000 depending on the market for the day. My goal was to break the six figures by the time I was 30 but because of my aggresive saving for retirement I was able to do it a year early.

Good for you. I'm hoping I'll be there by 30 as well. The way the market is going your money doubles every 3 years or so if you're aggressive. I think most people who plan well will have almost enough to retire at 40.

[disneysteve]

The way the market is going your money doubles every 3 years or so if you're aggressive. I think most people who plan well will have almost enough to retire at 40.

Excuse me, but what are you smoking?

For your money to double every 3 years, you would have to earn a 24% return. A little less when you add in new contributions.

And unless you are an NBA top draft pick or the latest pop music diva, you probably won't be able to retire anywhere near 40.