Another Milestone
"There's milestones on the Dover Road!"
- Charles Dickens, Little Dorrit
Today I went over $100K in my 401(k) account with my current employer. This is not too bad considering I have been here less than 4 years and I didn't roll anything into the plan from any previous employer.
Of course maxing out your withholding does help, but I have to give credit also to the 401(k) plan itself. The investment options are very, very good. I cannot begin to describe how ridiculously bad some of my previous 401(k) plans from previous employers have been. Fortunately, these have all been rolled over into IRA accounts now.
2 comments:
how did u do this if the max contribution is 15k ish a year?
15k X4 = 60...??
This is a very good question. The answer is that 15.5K is the limit for pretax contributions. Some employers let you make post-tax contributions after you hit the 15.5K pretax limit. This is totally legal and legitimate, but for many people, it's probably not worth it to make post-tax contributions like that.
But as I mentioned, in my case, I was very, very happy with the investment options in my 401(k), so I elected to continue making post-tax contributions after I went over the limit.
Investment returns over the last 4 years have been pretty good, but that does not explain all of it. In some of those years, I contributed more than 15K -- in a couple of years, it was up in the low 20'Ks.
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