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General Discussion => Share Your Badassity => Topic started by: h2ogal on January 06, 2015, 07:20:40 PM

Title: 2015 401k Contribution Rate - Please chime in!
Post by: h2ogal on January 06, 2015, 07:20:40 PM
Guys and Gals!

Had an idea to do something different this year with 401k contribution rates.  Instead of spreading my contributions over the year I'm maxing out contribution as early as possible in the year.  I just set my contribution at the max they allow - 50% of gross pay.  (Not sure I can sustain this level, but Im going to try it, and if I do I can max out 401K in by May!)

Here were my thoughts on why it makes sense to do this:

1. If I leave my current company for any reason during 2015, and I have a 401k 'waiting period' at a new job, then I wont lose any contribution opportunity. 

2. More time the $$ are in the market, more time to grow and compound.

3. My company does a year - end true up so I wont miss out on "match"  (Other places I have worked in the past didn't do this, so you had to plan to contribute the 6% each month or miss the match that month).

What do you guys plan to do, and why??
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: hexdexorex on January 06, 2015, 07:27:44 PM
I always front load my contribution. Company matches 20% of what I put in.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: MikeBear on January 06, 2015, 07:37:35 PM
I have to contribute every check, or miss out on the match. So, I adjust as needed to spread $24k over 26 paychecks.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: mochila on January 06, 2015, 08:01:40 PM
Heh. My employer's maximum match is $20. I'm putting in $750 twice a month, anyhow, but you'd think we were being discouraged from contributing.

Not that I'm complaining about the 10% in the 401a whether or not I contribute. . .
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: EDSMedS on January 06, 2015, 08:05:18 PM
Both DW and I contribute 100% until filled.  It's not hard b/c we keep ~10mo cash reserve and go WAY aggressive on investments.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: 27y/oTennesseeRetiree on January 06, 2015, 09:14:49 PM
I just set mine so that it would cover the $18k in 25 pay periods... that way my Christmas spending (very minimal) shows up in the 26th period automatically. 

Yes... i went back to work. SWAMI style. Max 4 days in the office a month. Max 2 hours any one of those days. Dreams do come true with FU money and passive income.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: chasesfish on January 07, 2015, 05:46:26 AM
I also front load my contributions, the excess contributions over $18,000 are setup to "spill over" into a different investment vehicle through work. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dude on January 07, 2015, 06:13:01 AM
With the Fed TSP, you have to spread it out equally over 26 pay periods or lose out on matching funds.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: oldfierm on January 07, 2015, 09:31:47 AM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: h2ogal on January 07, 2015, 06:16:37 PM
....MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!

I'm proud of all of you guys!!!  Congrats!!   
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: irishbear99 on January 07, 2015, 06:29:16 PM
Just make sure you read the rules for your plan. I'm also in a situation where I can't front load because the matching is based on the amount contributed each paycheck, which means if I don't get the match if I don't contribute during a pay period.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: jasman18 on January 08, 2015, 11:52:46 AM
MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!

Why cant you tell people close to you? Wouldnt that inspire them to save more?
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: WYOGO on January 08, 2015, 12:07:53 PM
I also cannot front load, but will be maxing the Pre and Post 401K throughout the year, maxing the tIRA and back filling excess into the taxable. I don't want to front load the Pre because there are per pay period percentage restrictions on the Post contributions despite a potential Pre true up, so a more evenly spread distribution better optimizes my contributions as a potential extreme early retiree.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: oldfierm on January 08, 2015, 01:37:23 PM

Quote
Why cant you tell people close to you? Wouldnt that inspire them to save more?

It might, but I'd be overcoming a lot of upbringing and social programming to have that discussion.  My parents NEVER spoke to me about their finances (they are typical millionaires next door), and my peers never talk about the details of their financial situations.  It's just not OK.  Reading your suggestion, I tried to picture myself telling my sister I maxed out my 401K and Roths, it makes me feel ill.  In my mind, I would a) be bragging and b) revealing personal financial details that I've been trained are not OK to discuss.  And that's my sister (who, by the way, is probably an excellent saver)...to tell anyone else would be unthinkable!! 

This is probably why our society is so screwed up about money.  It should be more acceptable to talk about being a good saver than about being a big spender, but I don't think we are there yet! And clearly, I am not!   
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: EDSMedS on January 08, 2015, 02:01:51 PM
This thread just made us some money!  Wife is a new fed employee, so we would have LOST money by front loading!

We will be adjusting her contributions now.  Dang.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dividendman on January 10, 2015, 11:02:48 PM
50%, max allowed... dang these paycheques with social security, 4011k and everything withheld are so much smaller than the ones just before newyears :(
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Frugalicious on January 11, 2015, 04:42:23 AM
30%.  A little front loading, but my company trues up at year end.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Indio on January 11, 2015, 08:28:57 AM
I usually front load so that I've maxed it out by Sept. Since I'm planning on switching jobs soon, I increased the deduction to 50%. Bonus gets paid in Feb and that boost should get me to the individual max contribution by time I leave that job in March. Company match continues throughout year as long as you've contributed more than 6%.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: desk_jockey on January 11, 2015, 08:58:58 AM
I'm partially front loaded, as my annual bonus pays out in 1st Q and I start with a higher percentage.  Some years I get a smaller commission share payment in the 2nd Half, so I tweak the percentage over the year to ensure that I'm still getting the company match on the last paycheck. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Caoineag on January 11, 2015, 11:04:46 AM
35% and 20% because those amounts guarantee the max. Overtime generally means we slightly front load which is fine since I get no employer match and DH's match is by quarter (aka as long as a certain amount is in 4th quarter, we get full match).
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: NinetyFour on January 11, 2015, 01:24:28 PM
Once I fully fund my Roth for 2015 and pay my April taxes, I will dump everything I can into my 403b account as fast as I can--I will max it out at $24,000.  Meanwhile, 19.4% of my salary will go to my 401a account every month.  (That percentage is set by my employer:  8% is my contribution, and 11.4% is my employer's contribution.)
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Nords on January 11, 2015, 04:50:02 PM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!
Excellent.  Congratulations.  I wish we could read about more people maximizing their tax-deferred contributions.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: LackOfSense on January 12, 2015, 08:45:39 AM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!

This year is the first time I've been able to max out my TSP as well. I don't get any bonuses so my contribution rate is at 27%. Still quite a ways from maxing out the wife's contributions but she does get some matching which is helpful (full match up to 5%). Should be able to max her's out once we pay off my non-Mustachian car in 6 months. Then we will be completely debt free.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: couponvan on January 12, 2015, 11:32:18 AM
I am contributing 40% of my PT salary plus $500 per check to the HSA this year. I will max out the HSA in June.  Right in time to afford Summer Camp so I can keep worjing in the Summer.  My company only matches lump sum 1x per year, so it doesn't matter when I do my contributions.  My husband's company matches per pay period, so we have to smooth his out over the year more. However his match is 9%, and mine is only 2.5%....so it would hurt to miss his match!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: The_Dude on January 12, 2015, 11:39:40 AM
Like others have posted I do max out before year end but it's usually around October/November depending on bonuses.

I don't get overly aggressive because I end up putting roughly the same amount to work in the market regardless.  As soon my 401K maxes I increase my taxable investments accordingly.

The one time I switched jobs I took 5 months off and still maxed my 401k for the year by bumping the contributions at the new job super high.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: BooksAreNerdy on January 12, 2015, 02:27:45 PM
Set at 14% for the year to max it out. I'm not sure if we still get the match if we front load. Worth looking in to.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Pooperman on January 12, 2015, 04:08:46 PM
Can't front load. 22% is what I'll be doing (14k). When I can max it, my 401k allows $ amounts too, so I'll do max/24 per paycheck when that happens so I don't have to think.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: 2Birds1Stone on January 12, 2015, 04:15:21 PM
My company sucks and only lets us do a max of 20% of base salary. Which for me means only being able to hit 50% of the IRS imposed limit.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: kpd905 on January 12, 2015, 05:30:33 PM
I think my company will only match each paycheck, and I am not eligible for the 401k until March, so I have to put 26% or so starting then so I can max it out.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: UnleashHell on January 13, 2015, 08:44:49 AM
my company matches per paycheck. its set right now to be just under the max for the eyar - I'll look at it again when (if) I get a bonus and/or pay increase in April and change it to get as close to max out as I can.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: CheapskateWife on January 13, 2015, 11:13:17 AM
This thread just made us some money!  Wife is a new fed employee, so we would have LOST money by front loading!

We will be adjusting her contributions now.  Dang.

This right here is why I love the forum!  I'm so darn grateful for this (mostly) fine group of helpful folks. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: chowtime on January 13, 2015, 12:39:45 PM
66% between my 403b and 457.  Planning to max out both by summer.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dandarc on January 13, 2015, 12:59:21 PM
Right now we do $720 / bi-weekly check into my wife's 457 - maxes out in 25 checks.  Might discuss with her about front-loading this, as this in my mind is our best retirement vehicle.

I'm self employed - I put 18.5% of my income each month for employer match into a Solo 401K.  The 18K deferral is priority #1, Roth IRA's are priority #2, finally extra on our mortgage (will be a taxable account once mortgage is paid off next year.  I expect to be sending in extra on the mortgage by October this year, hopefully sooner.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Iron Mike Sharpe on January 13, 2015, 01:25:18 PM
The corporation I work at sucks too.  We can only contribute up to 25% (plus 4% match).  So I am unable to max out. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Pooperman on January 13, 2015, 01:29:59 PM
For those that 'can't' max the 401k, check with your HR/whomever sends out the paychecks. You may be able to send them a check to add to the 401k. It's worth taking a look at (I've seen it mentioned before around the forums).
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: SomedayStache on January 13, 2015, 01:34:45 PM
Since there's been quite a few government employees on this thread mentioning the TSP - did everyone get the memo that for 2015 there are actually 27 payperiods rather than the typical 26?  Be sure to adjust your TSP withholdings accordingly. 

Here's some text from an email we got in my organization:

TSP Example:
$692.31 x 27 paydays = $18,692.37
Maximum employee contribution for 2015 is $18,000.00
Employee reaches maximum contribution in Payday 26.
Pay period 27: No employee contribution, no agency matching, employee receives only the automatic 1% government contribution.

If the TSP contribution is calculated based on 26 paydays versus 27 payday, the employee will reach the maximum contribution prior to the end of the pay year.  This will result in the loss of matching Government contributions.  Employees are encouraged to review their TSP elections for 2015 to avoid a potential loss of TSP matching Government contributions.

TSP Catch-Up Contributions The amount to be withheld each payday may be calculated using 27 paydays versus the normal 26 paydays.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: seattlecyclone on January 13, 2015, 05:04:30 PM
I'm front-loading the pre-tax 401(k) until it's maxed out, to be immediately followed by maxing out the after-tax 401(k). My paychecks will be zero until that happens. I like to think of it as essentially transferring money from taxable accounts into retirement accounts.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dandarc on January 13, 2015, 05:15:49 PM
I'm front-loading the pre-tax 401(k) until it's maxed out, to be immediately followed by maxing out the after-tax 401(k). My paychecks will be zero until that happens. I like to think of it as essentially transferring money from taxable accounts into retirement accounts.
Are you rolling the after-tax 401(k) to a Roth IRA (Megabackdoor Roth)?
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: seattlecyclone on January 13, 2015, 05:25:29 PM
I'm front-loading the pre-tax 401(k) until it's maxed out, to be immediately followed by maxing out the after-tax 401(k). My paychecks will be zero until that happens. I like to think of it as essentially transferring money from taxable accounts into retirement accounts.
Are you rolling the after-tax 401(k) to a Roth IRA (Megabackdoor Roth)?

Yes! My 401(k) web page has a button to roll over these funds with just a few clicks, so it's super easy!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: mm1970 on January 13, 2015, 05:30:30 PM
My company doesn't match. I originally had my 401k set up in 2012 to hit annual max at my salary at the time, (which is the same as now), except I was working 80%.

So now I hit the max some time in October or November.  I'm leaving it that way.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: MrMoogle on January 14, 2015, 03:02:33 PM
I have a company  match.  To get that I need to put in 5%.  So I figure how much that is, and how much remains out of the 18k.  I usually front load this whatever remains (ignoring the 5%), then drop to 5% for the rest of the year.  Then the last couple paychecks I jump up to about 20% to make sure I hit the limit.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Mortgage Free Mike on January 14, 2015, 05:34:41 PM
I am doing this as well, though my company only allows me to contribute 40% each paycheck. This is the first year my company will "true-up" at the end of the year. Yay!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Kwill on January 14, 2015, 06:09:55 PM
My company sucks and only lets us do a max of 20% of base salary. Which for me means only being able to hit 50% of the IRS imposed limit.

You know, I thought my employer limited us to 20% contributions to the 403b. So after reading MMM and learning I should be contributing more, I filled out the paperwork to increase my contribution from 5% to the maximum allowed--thinking that was going to be 20%. This was in September. Then I got an email from the HR person double-checking it with me since contributing the maximum would mean a "zero paycheck" for October, November, and December.

So anyway, I haven't been paid since September, and my emergency fund's low at this point. But I contributed a lot more to my 403b last year than I thought was possible. I started too late to max it out, but this year I'll start at 30% and adjust up later if the budget allows.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Beric01 on January 14, 2015, 07:07:37 PM
My company lets me put 75% of my paycheck in. I front-load and max out early in the year. I also have a 3% match. I guess if I were optimal I'd calculate the exact amount such that I could get the match for the entire year, but instead I just accept the lump-sum payment they give me at the end of the year for any match contributions I missed due to having maxed out early. The problem is I also get a raise mid-year, which further complicates things.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Guesl982374 on January 15, 2015, 07:28:04 AM
No front loading for us. My wife and I make equally across the year to fully capture all employer matching.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: cazaubon on January 17, 2015, 09:08:16 PM
I am putting 100% of my salary in so I can max out asap and living on savings for the first few months of the year (since I am planning to FIRE in May).
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dunhamjr on January 17, 2015, 11:04:31 PM
Had planned to just have it set at a level rate for the year to get the max contribution.

Interesting idea to front load the process.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: rpr on January 18, 2015, 01:04:00 AM
To me, it seems like all of this front loading is too much work. Keeping track etc. I'm lazy and will forget. I just put in equal amounts into everything every pay period. We don't have matches etc. Our employer puts in 10% irrespective of any employee matches. Also not possible for us to make any excess after tax contributions either.

Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: NorCal on January 18, 2015, 09:59:26 AM
I spread mine over the year because of matching.  My wife front loads hers because she usually gets a sizable bonus in January she can take advantage of, and matching isn't an issue for her.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: LowER on January 18, 2015, 11:16:28 AM
100% every year
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: CtrlMagicDel on January 21, 2015, 02:38:38 PM
This year I set it to 90% until I max out in Feb/March depending on bonuses - raises last year were pretty good and I'm finally getting to the point where I don't feel so bad about going salary. Tried setting higher than 90% but our system doesn't allow that. I complained to HR about it and must have been the first person to ever do so because they thought it could be set to 99%. Roth is already funded so I'll probably spend a couple of months building my savings back up and then throw the rest at my mortgage or Vanguard funds.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: seattlecyclone on January 21, 2015, 04:31:23 PM
There's not much practical difference between a 90% contribution and a 99% contribution because of payroll taxes. You have to pay social security and medicare taxes (7.65%) on your whole bonus (unless your bonus is somehow large enough to put you over the social security income limit for the year already). Then because you had this 7.65% go toward payroll taxes instead of your 401(k), they have to withhold some income tax for that portion of your pay. All in all this means that they have to withhold roughly 10% of your bonus check even if you are allowed to specify 99% 401(k) withholding.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: MrsCoolCat on January 21, 2015, 09:14:49 PM
Wow h2ogal,  I'm kinda doing something similar. I'm starting off 2015 with steam. I like having a larger safety net so I opted for x9% which will bring me to $18k at the end of the 26 week (bi-weekly) yearly pay cycle. My employer allows us to contribute up to 75% and I had to think twice about getting it done early at 75% since I'm still trial and error here. I am proud to say that Friday will be my 2nd paycheck at x9% contribution! I also like/appreciate the comment about if you were to leave for any reason. That does put things into perspective since it's the New Year, and I even sometimes question the stability of the corporate world (well, my boss is crazy anyways). Dully noted! Good luck!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: h2ogal on February 12, 2015, 07:08:07 PM
Wow, there are some real bad-asses here. 
I saw a 66%, 75% and 100%!!

Its only a few paydays into the new year, and so far Im holding strong at 50% to 401K plus HSA, etc...... but this week I think I will be eating beans and rice!  Haha! 

Kind of Fun actually to have the challenge of living on a tiny fraction of my paycheck though....
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: 3okirb on February 12, 2015, 07:20:50 PM
Front loading makes sense if you have a steady market or guaranteed returns, but dollar cost averaging your money in each pay period adds a lot of protection in a volatile market. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dunhamjr on February 13, 2015, 12:06:22 PM
technically i am front loading just a little bit right now since i didnt change my 401k contribution% but my base pay went up... so now its putting in about $23/check extra.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dividendman on February 13, 2015, 10:15:53 PM
Front loading makes sense if you have a steady market or guaranteed returns, but dollar cost averaging your money in each pay period adds a lot of protection in a volatile market.

I'm not sure what your definition of volatile or steady is but.... steady never happens yet DCA is still reliably worse over time.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 13, 2015, 11:59:02 PM
Zero....but I don't have access to a 401k =(
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: ender on February 14, 2015, 03:02:35 PM
About 25% now.

I currently am maxing my HSA out with about $1k/month and have some job insecurity. If/when that clears up I expect this percentage to increase a fair bit (plus I hope I get a raise out of the job situation anyways!).

I got my company to increase the maximum percentage to 75% last year and am anxious to take advantage of that.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Pooperman on February 14, 2015, 03:05:23 PM
Since I'm gettin married this year, I redid my projections. MAXING THE SUCKER!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 14, 2015, 03:20:33 PM
Since I'm gettin married this year, I redid my projections. MAXING THE SUCKER!
Whoo! High Five!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Pooperman on February 14, 2015, 03:53:55 PM
Since I'm gettin married this year, I redid my projections. MAXING THE SUCKER!
Whoo! High Five!

Thanks! and since my 401k is awesome enough to allow me to specify dollar amounts in lieu or percents if I so choose, I can hit 18k exactly with my final paycheck of the year without worry of missing out on matching :D.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: CCCA on February 14, 2015, 09:44:36 PM
just two paychecks into the year, I'm almost at $11000 contributed to my 403b and 457b.  I will slow down the rate slightly but still hit the $36K limit sometime in late summer/early fall.   
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: clarkfan1979 on February 15, 2015, 05:37:01 AM
My wife and I contribute enough to our 401K to avoid the 25% tax bracket. We are saving the rest in cash to buy rental house #2 within the next 8-10 months. I think we contributed around 14,500 to our 401K which is around 13.3%. Across the two of us, about 4.5% came from our employer and 8.8% from us. We should have contributed $500 more because we barely ended up in the 25% tax bracket this year by $500. We saved around 22K in cash.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: High FIdelity on February 15, 2015, 12:27:53 PM
Spliting between ROTH and 401k so not maxing per se, but when I take bonus deferral and what the business is co-contributing, I think Im at about 28% for the year.  Will kick it up to 30% soon as Im moving to a lower cost place.  Once I get my bearings there, I will see if 35% is doable.  All in all, not too shabby, methinks.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: zephyr911 on February 16, 2015, 07:24:36 AM
Such badassery going on here. Very inspiring.

I bumped my TSP to $600/2wks a few months back, not enough to max, but in the ballpark. Currently saving up $12k for solar panels and will revisit the TSP rate once that's funded.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Ed Mills on February 16, 2015, 11:46:16 AM
Greetings Fellow Hardcore Savers...there sure is a lot of badassity in this group!  My wife and I are public school teachers with access to 457 and 403b plans.  Since there is no matching on our 457 or 403b plans, we front-load our plans to the max.  Currently, we are both putting in $4,000 a month into our 457 plans.  Beginning in July, we'll go all in on our 403b plans.  Because I'm over 50, I'll get $48,000 into my plans, and my wife will get $36,000 into hers.  We'll also feed our IRAs this year with another $12,000. 

Good luck to all!  Ed
     
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: rpr on February 17, 2015, 01:52:58 PM
Greetings Fellow Hardcore Savers...there sure is a lot of badassity in this group!  My wife and I are public school teachers with access to 457 and 403b plans.  Since there is no matching on our 457 or 403b plans, we front-load our plans to the max.  Currently, we are both putting in $4,000 a month into our 457 plans.  Beginning in July, we'll go all in on our 403b plans.  Because I'm over 50, I'll get $48,000 into my plans, and my wife will get $36,000 into hers.  We'll also feed our IRAs this year with another $12,000. 

Good luck to all!  Ed
   
That is so hardcore, you guys are amazing. $96K into tax-deferred savings is huge. I assume that your employer must at least contribute to a pension plan being a public school.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: MrMathMustache on February 18, 2015, 09:13:22 AM
Greetings Fellow Hardcore Savers...there sure is a lot of badassity in this group!  My wife and I are public school teachers with access to 457 and 403b plans.  Since there is no matching on our 457 or 403b plans, we front-load our plans to the max.  Currently, we are both putting in $4,000 a month into our 457 plans.  Beginning in July, we'll go all in on our 403b plans.  Because I'm over 50, I'll get $48,000 into my plans, and my wife will get $36,000 into hers.  We'll also feed our IRAs this year with another $12,000. 

Good luck to all!  Ed
   

Wait a minute, I can contribute $18,000 to a 403(b) AND another $18,000 to a 457 plan in a single calendar year?  why did I not know this?
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dandarc on February 18, 2015, 09:17:57 AM
Greetings Fellow Hardcore Savers...there sure is a lot of badassity in this group!  My wife and I are public school teachers with access to 457 and 403b plans.  Since there is no matching on our 457 or 403b plans, we front-load our plans to the max.  Currently, we are both putting in $4,000 a month into our 457 plans.  Beginning in July, we'll go all in on our 403b plans.  Because I'm over 50, I'll get $48,000 into my plans, and my wife will get $36,000 into hers.  We'll also feed our IRAs this year with another $12,000. 

Good luck to all!  Ed
   

Wait a minute, I can contribute $18,000 to a 403(b) AND another $18,000 to a 457 plan in a single calendar year?  why did I not know this?
Pretty awesome eh?  And if it is a governmental 457, no early withdrawal penalty - fantastic for the early retiree.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: boarder42 on February 18, 2015, 01:42:36 PM
best day of the year is after our raises take effect and i can lower my 401k contribution level so i dont miss out on company match.  20% currently.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Money Badger on February 18, 2015, 05:07:39 PM
I sit here and can't believe how dumb I've been over the years not maxing our 401...   I'm in my mid-40's so it's also a function of income as well as my prior stupidity I guess...  Still haven't been too shabby, but have never been near maxing it...   Average last few years has been around $4K per year plus company match.   

Since MMM, I've ticked up the contribution rate on the 401K the past 4 months to MAX IT OUT to annual $18K for this year plus the company match...   Should hit the max end of November so definitely not as badass as some of you other savings commandos here.    But maxing the Roth is next on the list!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Ganon91 on February 19, 2015, 01:29:45 PM
2015's Projected Investments

Maxing out TSP: $18,000
Maxing out tIRA $5,500
Vanguard Brokerage $15,000
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Melf on February 19, 2015, 01:47:44 PM
I've never maxed my 401K contribution before....never came close.  I did ramp up my contributions near the end of 2014 and got up over 10K for the year though.  I should max for the first time this year with my current contribution rate.  I've already made my Roth IRA max contribution for the year.  All additional savings go to the Vanguard Taxable account in varying lump sums throughout the year.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Elle 8 on February 19, 2015, 04:53:04 PM
I started out the year at $462 a week (we can elect a percent or a flat amount) which would max me out at $24K with the catch-up (first year eligible!).   Then I got really nervous all of a sudden that my emergency fund wasn't high enough.  I don't know why I got this feeling all of a sudden; it was at the same level last year and didn't bother me.  Anyway, I cut my 403b way back for the time being and will increase it again later.  I hope to contribute 20K this year.  Last year I maxed out at $17.5K.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Kwill on February 20, 2015, 06:01:23 AM
I started out the year at $462 a week (we can elect a percent or a flat amount) which would max me out at $24K with the catch-up (first year eligible!).   Then I got really nervous all of a sudden that my emergency fund wasn't high enough.  I don't know why I got this feeling all of a sudden; it was at the same level last year and didn't bother me.  Anyway, I cut my 403b way back for the time being and will increase it again later.  I hope to contribute 20K this year.  Last year I maxed out at $17.5K.

This is kind of where I am right now. I am thinking of cutting down on my 403b contribution for now and increasing it later in the year if my job search goes well. Looking at my numbers and budget and all, it seems like I should be fine, but increasing the emergency fund and maybe spending just a little more freely are very tempting.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Pooperman on February 20, 2015, 06:37:02 AM
Since I'm gettin married this year, I redid my projections. MAXING THE SUCKER!
Whoo! High Five!

Thanks! and since my 401k is awesome enough to allow me to specify dollar amounts in lieu or percents if I so choose, I can hit 18k exactly with my final paycheck of the year without worry of missing out on matching :D.

It's $773/paycheck (semimonthly).
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: mochila on February 20, 2015, 06:40:34 AM
Technically, 0, as in $0 and 0%. I don't have access to a 401k, and my employer doesn't allow us to frontload our 403b. Our first paycheck was paid 12/30/14, but the benefits were not until 1/5/15, so I will have contributed $750 x 24 pay periods for the max. I'm on half salary for a sabbatical, but I'm seriously considering also maxing out a 457 (which was newly made available to us last year) in 2016, when I return to full pay.

One of my regrets is that 2015 will be only my fifth consecutive year contributing the max, but you've got to start somewhere. I also don't mind being a cautionary tale to younger workers not to misspend their youth.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Mississippi Mudstache on February 20, 2015, 07:24:56 AM
I have 25% going into the 401k and 8% in the HSA. I've maxed out all possible retirement space for 2 years now. 2015 will be the third. I'd like to front-load my 401k, but we meet our out-of-pocket max on health insurance ($6000) in the first few months of every year, so it doesn't work for us. I suppose I could pay the medical bills with 12-month interest-free credit cards, and pay them off after the 401k has been maxed out, but that's too much complication for me.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: someday on February 20, 2015, 05:24:18 PM
Been maxing the 401k (now 457) since 2007.  Always max the Roth (wish I did tIRA back when my income qualified)

Big regret was not maxing out the 401k last year in the 3 months while I was at my old job.  I had no clue that I was going to leave the job (I knew I wanted to, but what I want and what I get don't always coincide), and even then, I was operating under the incorrect assumption that you can only contribute $17,500 in 2014 to both 401k and 457.  I had no clue you could do $35,000 between the two.

If only my current employer would offer both a 457 and 401k.  I'm happy enough for the benefits of a 457, but I would love to have my cake and eat it too.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: RunHappy on February 21, 2015, 08:36:59 AM
I just started front loading this year when I realized my employer no longer does matching.  I'm set to max out my 401k contribution in July.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 21, 2015, 09:07:47 AM
I just started front loading this year when I realized my employer no longer does matching.  I'm set to max out my 401k contribution in July.
Not sure if you're aware of this, but one of the risks you take with this is if you switch employers mid year and they offer a match that is disbursed in a disadvantageous way:
Say the match is they put in 3% if you contribute 6%. Some employers will just match you 50% of your contributions until you contribute 6%. This won't present a problem for match maximization if you switch employers and you haven't contributed at least $18k - .06*(new salary) to your current 401k.

Other employers will only put in up to 3% per paycheck if you put in at least 6%. So in this setup, if you do not spread out your 401k contributions over the course of the year, you will miss out on some match.

Unless you already have plans to switch employers this year, I don't think this risk is worth fretting over unless your job is particularly unstable - the benefit of front loading is probably greater than the expected value of missed match with a new employer.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Ed Mills on February 21, 2015, 09:56:17 AM
 
[/quote]
That is so hardcore, you guys are amazing. $96K into tax-deferred savings is huge. I assume that your employer must at least contribute to a pension plan being a public school.
[/quote]

Yes, we do have pension too.  We'll qualify for those when we turn 60. Together my wife and I will get about $40,000 a year from our pensions.  That plus our savings, a paid off home, and our frugal ways will be more than enough for us to enjoy our retirement. 

Dan, the double 401k-style plans seems almost too good to be true, right?  If only more people used them!  Since 2009 my wife and and I maxed out all of our accounts; it is amazing how fast our wealth grew by using a PYFX method, pay yourself first to the extreme.  In our eyes, wages are not for spending and consumption, they are for savings.         
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: ADKMike on February 22, 2015, 08:12:10 PM
After looking at our household income, I increased my TSP contribution from 6% to 50%. Still trying to figure out why it took me so long to do this (better late than never).
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Dexterous on February 23, 2015, 02:11:40 AM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!
Excellent.  Congratulations.  I wish we could read about more people maximizing their tax-deferred contributions.

Here ya go!!  I max my traditional TSP and 2x Roth IRAs for my wife and I.  I do tell my coworkers about that, because I try to inspire them to reduce their debt/spending, and increase savings.  I've succeeded with several people in the past year, so I'm fairly happy about that -- probably more so than for work itself!  Hah
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: dandarc on February 23, 2015, 07:30:32 AM
Dan, the double 401k-style plans seems almost too good to be true, right?  If only more people used them!  Since 2009 my wife and and I maxed out all of our accounts; it is amazing how fast our wealth grew by using a PYFX method, pay yourself first to the extreme.  In our eyes, wages are not for spending and consumption, they are for savings.         

It is amazing how fast it happens once you see the light - it was December 2013 / January 2014 when we had just paid off our condo, and our retiremet accounts were at 103K.  I had just started reading MMM, and was like "crap" - came home and said to wife "lets try and put 100K into investments this year".  Today it is about 230K, and we sold the condo / moved to a somewhat more expensive house last year (fantastic decision - we are much closer to everything now).  All told, we added about 94K to retirement accounts last year - then of course there was some growth as well.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Unique User on February 23, 2015, 08:21:17 AM
Wow on some of these numbers.  We will max out everything we can this year, works out to about 50% of our after tax income. If we can manage raises or cutting other spending, DH employer allows additional after tax contributions for the backdoor roth, still contemplating that one.   

$24k to DH 401k plus a 6% match
18k to my 401k plus a 4.5% match
$6k to DH ESOP plus a 18% match
$5.5k to my IRA
$6.5k to DH IRA
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 23, 2015, 09:51:02 AM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!
Excellent.  Congratulations.  I wish we could read about more people maximizing their tax-deferred contributions.

Here ya go!!  I max my traditional TSP and 2x Roth IRAs for my wife and I.  I do tell my coworkers about that, because I try to inspire them to reduce their debt/spending, and increase savings.  I've succeeded with several people in the past year, so I'm fairly happy about that -- probably more so than for work itself!  Hah
I'm surprised that you actually succeeded in inspiring some of your coworkers! Congrats! Most people just think oh no way in hell can I max out my savings (and public sector employees aren't exactly the best paid employees to begin with....)
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Dexterous on February 23, 2015, 02:25:04 PM
I'm not so much of a badass that I can front load my TSP (military) contributions yet.  BUT I did set my contribution level to 20% - that, plus a bonus in March, should put me at the max by November!!  MY FIRST TIME MAXING TSP and both Roths for myself and my wife.  I seriously couldn't be more proud, and I haven't been able to tell anyone but you guys!
Excellent.  Congratulations.  I wish we could read about more people maximizing their tax-deferred contributions.

Here ya go!!  I max my traditional TSP and 2x Roth IRAs for my wife and I.  I do tell my coworkers about that, because I try to inspire them to reduce their debt/spending, and increase savings.  I've succeeded with several people in the past year, so I'm fairly happy about that -- probably more so than for work itself!  Hah
I'm surprised that you actually succeeded in inspiring some of your coworkers! Congrats! Most people just think oh no way in hell can I max out my savings (and public sector employees aren't exactly the best paid employees to begin with....)

I only succeeded *that* much with 1 person to max their TSP and civilian accounts.  The others are just reducing debts (mostly car payments) and raised investments by a couple percent.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: h2ogal on February 23, 2015, 02:28:07 PM
Quote
I'm surprised that you actually succeeded in inspiring some of your coworkers! Congrats!

Don't you find that so often people are 'funny' about taking about money!  They will go into gory detail about their Diet plans, their house remodeling plans, their vacation plans, love life, etc....but try to talk about Financial Plans, they will clam right up, and look at you like you have 3 heads! 

Money is a Dont Ask/Dont Tell item with most of my friends and family!

Thats one reason why I LOVE YOU GUYS so much!!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: UltraRunning on February 24, 2015, 06:24:21 AM
Guys and Gals!

Had an idea to do something different this year with 401k contribution rates.  Instead of spreading my contributions over the year I'm maxing out contribution as early as possible in the year.  I just set my contribution at the max they allow - 50% of gross pay.  (Not sure I can sustain this level, but Im going to try it, and if I do I can max out 401K in by May!)

Here were my thoughts on why it makes sense to do this:

1. If I leave my current company for any reason during 2015, and I have a 401k 'waiting period' at a new job, then I wont lose any contribution opportunity. 

2. More time the $$ are in the market, more time to grow and compound.

3. My company does a year - end true up so I wont miss out on "match"  (Other places I have worked in the past didn't do this, so you had to plan to contribute the 6% each month or miss the match that month).

What do you guys plan to do, and why??

Chiming in from a low income mustachian.  I earn about 36k after taxes.  When I get a 5% raise this April i will be moving my 401k contribution from 35% to 40%.   Congrats on being able to max out your 401k.  Thats a great accomplishment.  Best wishes in grinding towards your fi date. Also, when will you be FI?
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 24, 2015, 09:28:29 AM
Quote
I'm surprised that you actually succeeded in inspiring some of your coworkers! Congrats!

Don't you find that so often people are 'funny' about taking about money!  They will go into gory detail about their Diet plans, their house remodeling plans, their vacation plans, love life, etc....but try to talk about Financial Plans, they will clam right up, and look at you like you have 3 heads! 

Money is a Dont Ask/Dont Tell item with most of my friends and family!

Thats one reason why I LOVE YOU GUYS so much!!
Haha yea.

I'm pretty vocal about that kind of stuff in my lab, but I guess because we're grad students and still learning to handle our own personal finances, they're more receptive to my unsolicited advice.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: RunHappy on February 24, 2015, 12:00:42 PM
I just started front loading this year when I realized my employer no longer does matching.  I'm set to max out my 401k contribution in July.
Not sure if you're aware of this, but one of the risks you take with this is if you switch employers mid year and they offer a match that is disbursed in a disadvantageous way:
Say the match is they put in 3% if you contribute 6%. Some employers will just match you 50% of your contributions until you contribute 6%. This won't present a problem for match maximization if you switch employers and you haven't contributed at least $18k - .06*(new salary) to your current 401k.

Other employers will only put in up to 3% per paycheck if you put in at least 6%. So in this setup, if you do not spread out your 401k contributions over the course of the year, you will miss out on some match.

Unless you already have plans to switch employers this year, I don't think this risk is worth fretting over unless your job is particularly unstable - the benefit of front loading is probably greater than the expected value of missed match with a new employer.

My company does not do 401k matching.  I am not planning to switch employers but I am planning to take maternity leave from September to the end of the year, so front loading was the best option.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: tallen on February 24, 2015, 12:45:07 PM
Just started putting $346 weekly in this year (will put me $8 short of $18000 max),was putting in 15%. Funny thing is they tried to tell me federal law says I can only contribute up to 15% of my gross pay. After a little insistence they where mistaken they called the Bank that runs our plan and found out that law was repealed over 10 years ago, and I'm the 1st person in the company to ever want more than 15% taken out of my pay for them to check on it. Puts me in the 15% tax bracket for my 40 hrs and even a few hours overtime before the 25% kicks in.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 24, 2015, 12:46:28 PM
I'm the 1st person in the company to ever want more than 15% taken out of my pay for them to check on it.
????

How big is this company, and how long has this company been around?
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: tallen on February 24, 2015, 12:56:32 PM
I'm the 1st person in the company to ever want more than 15% taken out of my pay for them to check on it.
????

How big is this company, and how long has this company been around?

Been around at least 50 years, and probably 100-150 employees (maybe more, there is 2 plants and I work at the small one)
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: anon-e-mouse on February 24, 2015, 10:02:26 PM
Finally changed my 401k deduction to $750 biweekly.  This will be my first year ever maxing out.  You guys (and gals) inspire the %#=+* outta me!
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: RNwastash on February 24, 2015, 10:16:09 PM
Maxing out the 403b's for hubby and I, $24k for him, and $18k for me, spread out over 26 paychecks.  I wish I could frontload, but need the $$for monthly bills- mortgage, utilities, etc.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: johnny847 on February 24, 2015, 10:23:39 PM
Maxing out the 403b's for hubby and I, $24k for him, and $18k for me, spread out over 26 paychecks.  I wish I could frontload, but need the $$for monthly bills- mortgage, utilities, etc.
When was your (or your husbands?) first paycheck of the year? You may end up with 27 paychecks this year if your first paycheck was 1/1 or 1/2.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: 27y/oTennesseeRetiree on March 03, 2015, 08:20:44 PM
I convinced my employer to add an after tax 401(k). Why this is taking Months I don't know... Trying not to bother them more than once a month.

Right now I'm at 45%. Hoping to push it to 100%... Well 100% less health insurance, as, medi, and taxes.
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: rocketman48097 on March 04, 2015, 02:53:21 PM
I plan to put away just enough to stay out of the 25% federal tax bracket, about 13k this year for me.  I can't front load, because my company does NOT true up the match.  If you miss one pay period, they don't match at all.  That is too much free money to ignore. 

I am also saving for years 1-5 of early retirement, otherwise I would throw EVERY DIME I could at pre tax accounts.  However, I am saving in taxable accounts since I will need these soon for early retirement until my Roth conversions are complete. 
Title: Re: 2015 401k Contribution Rate - Please chime in!
Post by: Vertical Mode on March 04, 2015, 03:31:01 PM
I have mine set to 40%, enough to max it out by late October. The larger paychecks for the end of the year go to fund the Roth IRA and taxable accounts.