How much should I be putting in my 401K? | Investor Education


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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