{ "media_type": "text", "post_content": "Do a lot of Americans max 401k ($19500), Roth IRA ($6000) , HSA ($3550)? Do you think this is a good thing to strive for?", "post_id": "61ab75335f88c700267b8d2b", "reply_count": 81, "vote_count": 21, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

Do a lot of Americans max 401k ($19500), Roth IRA ($6000) , HSA ($3550)? Do you think this is a good thing to strive for?

likehelpful
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I would say most absolutely do not if you look at average retirement savings. Most have absolutely no ability to do so if you look at average income for a family. Most people in this bowl are professionals with significantly higher than average income. Depends on how you are defining a lot.

likesmart

Yup - this bowl / majority of the app is a bubble - not a true representation of the country.

likesmart

If you are just getting starting in consulting out of college, I would recommend doing employer match, then max Roth IRA (6k), then start maxing 401k. This way as your income increase you never have to worry about contributing more. In the long run this will also help

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If you're healthy, max HSA!

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Americans? No. Consultants? I should certainly hope so!

likefunny

Vanguard reported that last year about 12% of participants maxed out their 401k. However, only about a third of Americans contribute to a 401k, so really only about 4% contribute the max.

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Backdoor Roth is what you strive for. Also, most Americans who have access to a 401(k) can’t afford to put away $19,500 let alone the other stuff.

likehelpfulsmart

I am not following your point.

The median household income in the US is like $65,000. I don't think 45% savings rate is reasonable for most families

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Yes but Americans usually strive for $500 truck payments 😞

likefunny

Don’t understand the issue with a $500 truck payment. Have you seen the new F150 Powerboost?!?

funnylike

This is a pretty insulting question. It's great to ask but it shows a total lack of class consciousness and maybe even race consciousness so I'd also ask yourself how you're drawing the lines of who qualifies as an "American" in your mind

funnylike

A1 stop trying to find racism in everything you read. This is a discussion on retirement savings. It is totally unnecessary to accuse OP of being unconsciously racist because they referred to “Americans”.

likesmart

I was a financial advisor for 12 years. Pretty much nobody does. It happens, but they are few and far between. I had clients making 200k a year and drive max their 401k as much as I tried to teach them. American like their toys.

likesmart

They don’t but you should.

likesmart

If you’re married. 39k, 12k and 7100k. Woot woot 😂😂

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If you have a side hustle an SEP also (basically similar to a regular IRA with bigger limit, up to 25% revenue of your small business)

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I strive for owning as much Bitcoin as possible. You should too

likesmartfunny

I would guess very few have the exact mix OP describes. People who qualify to put the max into a Roth often aren’t also putting away $23K pretax, esp if they live in a HoL area.

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I was responding your post that said very few did this. I said nothing about most Americans. It is definitely way more than very few. And way less than most Americans. Not sure way you say again, since you never said it before

Did this for the first time last year. This year doing the same but with backdoor Roth IRA

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A few do.

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If you’re putting away $19.5k in 401k I would expect that you would be incomes out of putting $6k into a Roth IRA.

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I've been doing both for years. Backdoor Roth gets around income limit. I also do megabackdoor. 19.5k 401k plus 6.5k backdoor Roth plus 15k megabackdoor Roth

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Probably. I would also strive for eating a balanced diet, exercising often, investing in your education, taking care of loved ones, and trying to be a good person…..

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Yes that’s a good thing to strive for!

...why would it not be?

Because the vast majority of people can’t

likesmart

You forgot 5000 in an FSA

Some companies allow use of both a medical FSA and an HSA, but in this scenario the FSA is deemed limited purpose which just means it can't be used for medical, but dental and optometry is allowed. I've never not used all my FSA funds- I often find myself wishing the limits were higher.

Yes.

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