"maxing out" TSP, 401, etc.

[Anonymous]

Quick survey!

I've seen a few posts lately by OP's claiming they are "maxing out" their contribution in order to get the employer match, or "maxing out" even with a HHI of 90k and family of 4.

It kinda makes me wonder what y'all think it actually means. I have recently worked in the field of retirement plans, so I already know

I am particularly interested in how the 90k poster makes that work.

[Anonymous]

I assume it means that they are contributing the federal limit of $17,500.

[Anonymous]

Its $18,000 this year, but yes, that is what it means.

[Anonymous]

What I meant was I contributed the most my employer let me which was 10%.

I know I could have by federal law contributed more but I would still say I maxed out at work.

It wasn't until I was in my mid-30's that I actually hit the federal max. I now call that extra money my Christmas bonus, because I hit the max in November and my paycheck goes up.

[Anonymous]

Contributing the federal max - 18K this year.

[Anonymous]

Anonymous wrote:Quick survey!

I've seen a few posts lately by OP's claiming they are "maxing out" their contribution in order to get the employer match, or "maxing out" even with a HHI of 90k and family of 4.

It kinda makes me wonder what y'all think it actually means. I have recently worked in the field of retirement plans, so I already know

I am particularly interested in how the 90k poster makes that work.

I think "maxing out" is maxing out based on whatever rules one has based on their income. For some it is 10% and for others it would be the $18k.

[Anonymous]

Maxing out the employer match means just that - contributing the maximum amount that the employer will match. With TSP, I think it's 5%. Maxing out the invididual contribution is putting in $18k.

[Anonymous]

Maxing out means hitting the limit. Anyone who is just hitting the maximum their employer matches is not maxing out. I have on some years maxed out. Meaning I could not have added more to my 401k if I had wanted. Now my husband maxes and I hit my employer's match.

[Anonymous]

Anonymous wrote:Maxing out the employer match means just that - contributing the maximum amount that the employer will match. With TSP, I think it's 5%. Maxing out the invididual contribution is putting in $18k.

If talking about the employer match, the term is not maxing out.

[Anonymous]

If you over 50, it means $24K

[Anonymous]

For those in TSP it is not only contributing the $18k IRS limit, but spreading it out equally over 26 pay periods so you don't lose any government matching.

[Anonymous]

Anonymous wrote:If you over 50, it means $24K

+1

This is what I am doing to catch up.

[Anonymous]

we make 110k with one FT and one PT income. We max out (17,500 in 2014) the available 401k and then put the max in out IRAs (11k in two). I find it humorous that you assumed we just didn't understand what maxing out meant, instead of thinking we might just be in a position to be better savers.

[Anonymous]

When I say maxing out, mean the federal limit. So $17,500 into two TSPs last year, have upped the contributions to hit $18k for this year. However, this is only our 3rd year maxing. We are early 30s. Hope to be in the position to do catch ups when we are age eligible to make up for the 6 years I didn't max and the 8 he didn't.

[Anonymous]

Some people are limited to ten percent? I did not know this. Can someone explain why?

I assumed "maxing out" meant $18,000/$24,000. I assume people contribute whatever amount to get the maximum employer match when they somehow reference employer match.