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Home > Made a 401K Mistake

Made a 401K Mistake

November 30th, 2023 at 02:54 pm

From what I understood my husband's work would 100% match the first 1% you contributed and then 50% match up to 5%. But going through our retirement accounts yesterday for the end of the month I noticed that it said 50% up to an additional 5% contribution. So a total of 6% to get all the employer matching. Ugh!

 

That means we have been missing out on free money all this time. I am wondering if they didn't change it at the last union contract because I originally thought it was 100% up to 3% and then 50% up to 5%. But who knows. I immediately upped our contribution to get the max matching. They also contribute an additional 2.5%-ish in a lump in Decemeber. So we will be up to 12% in his Roth 401K a year plus we put 5% in my Roth IRA.  

17% isn't great but isn't terrible. Thankfully we have time on our side and everything is Roth so tax free in the future. 

3 Responses to “Made a 401K Mistake”

  1. Petunia 100 Says:
    1701368291

    I think that 17% is a very healthy retirement nest egg contribution.

  2. terri77 Says:
    1701435198

    Most recommend 15% in retirement contributions, so you’re exceeding that with 17%.

  3. LivingAlmostLarge Says:
    1701456805

    That's amazing and great work

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