How Much Should I Contribute To My 401(k)
When thinking of retiring, it can be easy to spiral into an anxiety attack. How much can I put into my 401(k)? Should I worry about my 401(k)? Is a 401(k) part of my net worth? Heck, what even is a 401(k)? Fortunately, we at IntentGen will walk you through this process, as no one should be left in the dark especially when it comes to something so substantive. Learn more with us below, or talk with our finance experts today.
How Does a 401(k) Work?
A 401(k) is a retirement saving plan offered by many for-profit companies. A 401(k) allows you to decrease your taxable income because you pay it with pre-tax dollars but is riskier because it relies on the market. Still, a 401(k) is a great way to save for retirement.
How Much Can I Put Into My 401(k)?
Most retirement experts recommend contributing roughly 10-15% of your income towards your 401(k) each year. The most you can contribute in 2023 is $22,500 or $30,000 if you are 50 or older. However, this is a general rule and ultimately depends on your specific circumstances. If you are young and already have plenty of money in your savings, you could decrease your contributions. However, if you are 50 years old and don’t have any retirement savings, you should save more than 20% of your gross income.
In addition, you can talk with your employer about how much they contribute to your 401(k). With an employer match, your employer will match your contributions up to a certain percentage of your gross salary.
Learn More With Us Today!
We at IntentGen are here to help if you have further questions or concerns. Feel free to utilize our online resources or articles to learn more, or be sure to give us a call if you would like to learn more about retiring responsibly.