401K contributions

I do 10% but that maxes it out. The 401K cap should be removed or at least raised. If it is out retirement, we need to be able to hoard more money.

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What’s the cap for 401K?

I am maxing out my 403B the last few years, on top of a Roth and a pension.

23k. I max that out around August.

$23,000 plus an additional $7,000 if you’re over 50.

100% agree. If you want people to save as much as possible, give them the option to contribute more. More contributions today is someone taxpayers are less likely to have to bailout in the future.


So basically the same as the 403b.

I assume they are identical. Just a different section of the tax code.

I’m pretty sure, the 401b is the same as a 401k, but for government employees and some nonprofits.

CH is constantly going on about how 403Bs are inferior, but has never seemed to explain it well. Mine just goes right into Vanguard with low cost funds.

I think his issue are the 403b plans run by an insurance provider with extremely high fees.

I think they changed that, at least in Illinois.

Not mine. Maybe CH is just painting with too broad a brush, but he keeps saying it.

That’s why. Too many schools and govt agencies take the easy way out for themselves and the employees get the shaft.

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He paints with a broad brush because he is looking at the total picture and wants people to think twice.

If you have a different experience, that’s nice for you, but lots of teachers are stuck with shit plans.

In my humble opinion, there is a really good reason there is a limit on how much can go into these vehicles in a year.

That reason is called tax deferral. All the money you put in has tax deferred and you do not “have income” and pay tax on it. That directly slashes how much the revenue boyz get, and we might not be able to pay off the national debt if the tax collection is deferred! :rofl:

Other side of deferral coin is when you take “your” money, only to learn that in so doing you will “have income” and owe tax. The only way that I know out of this dilemma is to give it away to an appropriate charitable organization.

Democrats hate self sufficiency

They (403B) were created before ERISA. By the way, you can contribute to a 401k or a 403B and a 457 but not a 401k and 403B

It’s soak the rich. They don’t want people who make $500,000 a year to contribute more than someone making $150,000 a year

They could offer an option where the first $30,000 is tax deductible or tax free at withdrawal and the remainder - anything you want to put in it is tax-deferred but not tax deductible

That way the IRS can have double taxation - not give you a deduction and tax you on the earnings