If you max out your retirement, what is your income?

[Anonymous]

I’m 42 and finally started maxing both spouses 401ks at about 37 after a new job increased my salary to 150k plus bonus and spouse made about 100k. Before that I aimed for 15% of my paycheck. A couple years later I learned about back door Roth IRA so added another 12k.

Now making more and saving extra in brokerage account, along with increased spending habits due to higher income and inflation.

[Anonymous]

Anonymous wrote: “max out” depends on the situation of the individual.

I am a teacher and have 7.5% of my income taken for pension. This basically gets matched by the state.

I also have a 403b, 457b and Roth. My wife has only a Roth.

We have a combined income of $171k and are able to max out all the accounts along with the pension. We have finally done so when the pandemic hit. I was able to save over a 3rd of my income and “max out”. However now, inflation and lack of raises is forcing us to pull back. We still save over 25% of our income plus the pension.

This is right. We both have the traditional 401k plans, and max them out at $20,500. We also both just turned 50, and so take advantage of the $6500 catch up contribution, for a total of $54k. I also get an "employer match" of an additional $40,500, up to the defined contribution maximum of $61,000. Finally, I have a mandatory defined benefit contribution - not sure what that will be. So our "maximum" is well over $100k each year.

In contrast, a household with a single earner under 50 yo in a traditional W2 job will have a maximum of $20,500 this year.

And as others have said, "maximum" refers to the most tax-advantaged space tied to employment that a person/family has access to. It does not mean as much as I can, or as much as my employer matches.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DH and I maxed out whatever we could whenever we were eligible.

Now at 58 and 62, we appear to have oversaved- even counting the past year’s lack luster results.

My advice is to max out until you are 40, then re-assess. And re-assess at 50.

We're 40/41 and have achieved "Coast FIRE", meaning that if we don't contribute anything ever again and just let it ride we should be set at retirement time (assuming 7% returns). We'll still max out because I'd like to push the retirement timeline forward at least 5 years, but at 45 I will reassess and might consider shifting some funds to a vacation house or something since any additional retirement contributions are just gravy.

This is where we are, at 50/53. We still contribute, because we'd be crazy not to because of the tax advantages, and because I also would like to retire earlier. But I'm thinking of downshifting to a new job, and then we'd really be coasting - just paying the bills with current income.

[Anonymous]

160k.... spouse makes 105k and is also maxing out.

[Anonymous]

Start putting away 10% of your allowance when you are eight years old, continue to do that after college until the day you retire. You will end up with $700K - $3M.

[Anonymous]

Anonymous wrote:At what income do you feel comfortable putting away 20k or so for retirement?

dH and I met at GMU and have been together since. He’s the money manager and from the day we got our first jobs he asked me to max my retirement out. I agreee and we have been doing that since our first jobs making approx 56k/yr. I’m not 46 and have had a mega Roth for several year and am very happy I followed his advice.

[Anonymous]

$165K, I started maxing out in 2010 though when I earned in the $80s

[Anonymous]

When I made $89k. Which was a decade ago so the limit was significantly less then. But I’ve increased it to the new max allowed every time the IRS increases the limit.

[Anonymous]

I maxed out a regular IRA stating my 2L summer and have just continued to max out a 401k since I got my first paycheck. I never thought a lot about it - to do anything different would feel blasphemous.

[Anonymous]

I started maxing out when I was at about $95K. I was 31ish.

[Anonymous]

110K, taking the 50+ full amount.
No mortgage, no debt, kids in good public so doable.

[Anonymous]

Anonymous wrote:I maxed out a regular IRA stating my 2L summer and have just continued to max out a 401k since I got my first paycheck. I never thought a lot about it - to do anything different would feel blasphemous.

So your answer is you started maxing at $160k+ but you wanted it to sound like a moral achievement and not basic tax strategy. Got it.

[Anonymous]

DH and I both work. We’re 22 and 24 years old, respectively. HHI is $130K and we each max out our Roth IRA and 401k contributions and expect to do so until we retire (planning to at 47).

[Anonymous]

We have both done full IRA’s since college and I only withheld enough to get the 401k match until DH finished law school at which point we both started maxing out until I quit to SAH.

[Anonymous]

Anonymous wrote:We have both done full IRA’s since college and I only withheld enough to get the 401k match until DH finished law school at which point we both started maxing out until I quit to SAH.

^^DH continued to max out of course.