Comments on: Increased 401k Contribution Limits in 2009

By: Patrick

Patrick — Thu, 05 Nov 2009 14:31:38 +0000

Todd, Yes, a 401k plan is voluntary for the company and they can structure their 401k plan as they see fit. You can contact your HR department and ask if you are able to contribute a portion of your bonuses toward your 401k plan (some companies allow this).

By: Todd

Todd — Thu, 05 Nov 2009 14:27:07 +0000

I have a questions I’m hoping someone can answer. My company offers a match on contributions but you are only allowed to contribute a % based on salary. I get screwed because a large part of my income is from bonuses and commissions since I am in sales. My questions is can my company structure the 401K plan this way?

By: Andy

Andy — Wed, 29 Jul 2009 15:06:13 +0000

Generally a good idea to max out contributions if possible. The only caveat I have is to consider more than target retirment/401K funds. Just look at their performance over the last 3 years compared to regular 401K funds.

By: Patrick

Patrick — Wed, 14 Jan 2009 12:09:33 +0000

doctor S: My money is spread around a few different places. I need to work on consolidating my retirement accounts this year! I agree about the Roth. So long as the government doesn’t change rules about the money you already have in there, a Roth is probably the best deal you will find.

By: doctor S

doctor S — Wed, 14 Jan 2009 04:11:42 +0000

I just hope your money is with my company! I reccomend the roths just b/c U wont have to worry about it later, but thats just my opinion.

By: Jeff Rose

Jeff Rose — Wed, 14 Jan 2009 02:41:52 +0000

Kristen-

Generally speaking, your correct in your thoughts in starting an IRA. I say “generally” because as Patrick says, I don’t know enough about your situation. Without a match in your 403b, opening an IRA will allow you to invest in many more options that the limited offering in your 403b’s. Also, the 403b realm is changing and by what I’ve seen thus far, not for the better. I could elaborate, but don’t want to put anybody to sleep

Definitely suggest meeting with your planner to see if the IRA makes sense and whether you should go the Traditional or Roth direction.

Good luck!

By: Patrick

Patrick — Tue, 13 Jan 2009 14:52:20 +0000

Kristen: Pensions are awesome, and extremely rare these days. It’s a great thing you have one!

I think you should invest additional funds for retirement because your pension + social security probably will not be enough to cover your retirement needs. I don’t know enough about your situation to recommend investing in an IRA over your 403b, so speaking with your financial advisor is your best bet.

By: Kristen

Kristen — Tue, 13 Jan 2009 14:40:00 +0000

Interesting post Patrick. My company as a non-profit has a 403b, but they don’t match our contributions. However, lest anyone think I work for a stingy company, they have a pension plan that they pay into for each employee.

I haven’t been doing any retirement investing in the past year. (I know … Shame on me!) I’m going to talk with my financial planner about starting an IRA. I’m thinking it would make more sense for me to invest in an IRA than the 403b, since there’s no matching money there. Any thoughts?