401K Question...

[Ahadi]

Im currently about to enroll in my 401K and the first question is this

Your employer offers a non-elective contribution!
Your employer will match 100% on the first 1% of your salary contributed.

The matching contribution will not exceed 1% of your salary.

So the options are 8% Pre-tax, 10% Pre-tax, 12% Pre-tax, OTHER Pre-tax (Custom amount), or I dont want to contribute.

What's the best option to select?

 

[ahomeplateslugger]

Im currently about to enroll in my 401K and the first question is this

Your employer offers a non-elective contribution!
Your employer will match 100% on the first 1% of your salary contributed.

The matching contribution will not exceed 1% of your salary.

So the options are 8% Pre-tax, 10% Pre-tax, 12% Pre-tax, OTHER Pre-tax (Custom amount), or I dont want to contribute.

What's the best option to select?

normally you should get the max match for your 401k and the rest is up to you and what you can afford. 1% is pretty low but it's nice of them to make non-elective contributions. since they're contributing to your 401k regardless of how much you put, you should ask yourself how much do you want to save and how much can you afford.

ideally you should save and contribute as much as you can (19k is the max), but the only problem is i don't know what brokerage they use and what options they have to invest in. plus you gotta read the expense ratio and fees of what they offer. sometimes you are better off maxing a roth ira and just getting the match from an employer.

 

[Ghostface Trillah]

Only put in what your company will match. Take the rest of your money and invest it however you see fit. Don't let your company get more interest off your money than necessary.

That's just my opinion though.

 

[Ahadi]

 

[Truefan31]

Im currently about to enroll in my 401K and the first question is this

Your employer offers a non-elective contribution!
Your employer will match 100% on the first 1% of your salary contributed.

The matching contribution will not exceed 1% of your salary.

So the options are 8% Pre-tax, 10% Pre-tax, 12% Pre-tax, OTHER Pre-tax (Custom amount), or I dont want to contribute.

What's the best option to select?

some questions:

how old are you?

So they’re putting in basically 1% of your salary either way? Doesn’t matter what you contribute?

there’s no after tax option? Roth 401k option?

do you have a lot of debt?

 

[Ahadi]

some questions:

how old are you?

So they’re putting in basically 1% of your salary either way? Doesn’t matter what you contribute?

there’s no after tax option? Roth 401k option?

do you have a lot of debt?

24

I don’t think so. Maybe after I select a pre-tax option, an after tax may show up. Roth I’m not sure.

No debt

 

[Skooby]

If they don't offer a Roth 401k, do the 1% then go get a Roth IRA and max that out.

 

[⠀X ⠀]

You'd probably be better off investing that money on your own. You can have it come out your check automatically, just like you would a 401k. It doesn’t hurt to speak to a financial advisor, so that can tell you the best option for whatever you want to do