The question of how much should be put into your 401K is a kin to how much should I be putting towards retirement.
How much to put into a 401K
Most employers match 401k contributions to a certain percentage (often between 3% and 6%). Maximizing the match contribution is essential. The alternative is you leaving compensation on the table.
How much to put into retirement
This question is much more complex. Determining factors:
- Anticipated years in retirement
- Expected income needs
- Alternate income sources
- Time horizon to retirement
- And many others
A starting point would be to get your overall contribution rate to 10% between employer plans, IRA/ROTH, and non-qualified investment options. Ultimately consult a qualified adviser to help calculate your personal savings needs.
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