Just switched jobs. The new job will allow me to contribute up to 18k with 18k match into their 401k. However, the issue is that because I am only working with them for 5/12 months of 2017, my base salary is only eligible to get $7500 as the "free match". I can salary reduce to do the full contribution and full match. And to throw a further wrench in, only Nov and Dec pay will be eligible to contribute so the entire my portion of $28.5k will be split between my Nov and Dec pay (I should note that the remainder will not allow me to float my monthly bills and I would either need to aggressively save in Sept/October or draw on savings). They will also allow me to customize the amount I would like to put into the 401k. (We are in the 33% tax bracket; no state income tax)
I have about $16K contributed from my work in first half of 2017 to my SEP IRA. (I was contributing 30K annually before so the 7.5 + 7.5 free match will be a little more than what I was already doing)
I guess my question is-
How much is a pretax/tax deferred money worth? Should I stress the whole system to fully put away over $50k this year? Do a smaller sum?
This extra toward retirement will mean we aren't funding other savings goals we had planned on doing.
Thanks for your advice!!
I have about $16K contributed from my work in first half of 2017 to my SEP IRA. (I was contributing 30K annually before so the 7.5 + 7.5 free match will be a little more than what I was already doing)
I guess my question is-
How much is a pretax/tax deferred money worth? Should I stress the whole system to fully put away over $50k this year? Do a smaller sum?
This extra toward retirement will mean we aren't funding other savings goals we had planned on doing.
Thanks for your advice!!
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