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Yes, I've been upfront about the error, acknowledged it, and I've edited the original post. I still stand by my assessment it's not cool to nudge people not to
by dontbenebby 8y ago
Yes, I've been upfront about the error, acknowledged it, and I've edited the original post.
I still stand by my assessment it's not cool to nudge people not to save.
There are many people who'd like to save, but don't have 401ks. (Ex: students doing internships, contractors, or people working in the service industry)
The limit for a 401k is ~18k IIRC and ~5500 for an IRA IIRC. If you had say, 10k from a summer internship, you'd put the difference in a normal, taxable brokerage.
Having a brokerage account does not mean one is affluent.
- ryandrake 8y agoTo be pedantic, the total pre-tax 401(k) contribution limit in 2019 is $19k ($25k if you’re over 50). But the total defined contribution limit (employer+employee, including after-tax) is $56k. So if you were so inclined (and fortunate to have the income) you could sock away $56k through an employer plan, including pretax, company match, and post-tax. IRA (traditional and Roth) contribution limit in 2019 is $6k. Source: https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 https://www.irs.gov/newsroom/401k-contribution-limit-increas...
- jonathonlui 8y agoIf you're self-employed (e.g. contractor) can set up a SEP-IRA and do "employer" contributions in addition to the regular "employee" IRA contribution. Another option is a "solo" 401k account but there's more paperwork involved.