When everyone says to max out your 401K, what percent are you contributing? Fidelity told me the max I could contribute is 75%. Is that a correct? How are you guys living if 75% of your pay is being taken out?

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10% a paycheck (on a big law salary) will get you the full $20,500 before the end of the year. A first year at $215k would be contributing almost $900 a paycheck on 10%. That’ll get you there in just under 23 paychecks

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I think people generally mean to maximize you tax free contribution, which is $20,500 for under 50 workers. Any contributions over that are taxed normally.

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I stack mine in the last quarter to try and take advantage, if any, of the January effect. Your 401(k) provider should be smart enough to stop contributions at the annual limit.

funny

Lol how did that go this January, A2?

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I set it at 10% and forget it, however, I have been toying w the idea of just putting my entire paycheck in Jan/feb towards it and enjoying a full paycheck the rest of the year 🤷🏾‍♀️ my firm doesn’t match so idk if it matters really

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Yeah, my first couple of years, I needed the cash more than the savings, so I contributed very little. Then I started frontloading mine. Our bonuses pay out in February, and I always have 10% of that contributed. I think I’m two paychecks from maxing out my contribution this year.

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You win some and you lose some. One data point is statistical noise. Plus, everyone is down from the all time highs. I don't really care. My 401(k) is not a huge percentage of my net worth.

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Where is the rest of your $$?

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Thank you, both!!

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