Not fully funding 401k? Why not?

[Anonymous]

If you are not putting the max into your 401k, why not?

We had to move for DH's job and I, therefore, had to change jobs. I haven't yet returned to my previous earning level. We're financially hurting but I refuse to back down from maxing out my 401k. Has anyone else backed down? Does it freak you out?

[Anonymous]

cool story sis. you do what makes sense to you.

[Anonymous]

Because i really cannot afford to defer 18k of income at this stage in my life. Most people are this way.

[Anonymous]

Is it really that inconceivable that not everyone's budgets allow them to max out their 401k every year?

[Anonymous]

Double daycare expenses and not wanting to feel intense financial pressure during this temporary phase in life.

[Anonymous]

Anonymous wrote:Because i really cannot afford to defer 18k of income at this stage in my life. Most people are this way.

+1 not sure how honest your question really is OP.

[Anonymous]

When I was younger I did the amount that got me the most match (usually about 6-7% depending on company policy) but did not do the tax max because I had too many current expenses. I moved up to the tax max when I earned enough to do that. I'm now in my 50s and have plenty in my 401k, along with other savings, so while it would have been nice to defer more in my 20s, I have more than enough to retire on. Not everyone has the resources to defer $18,500 per year.

[Anonymous]

I have a lot of $ in real estate so can't afford to max it.

[Anonymous]

OP here. I'm getting a little flak for this question but that's actually a bit reassuring. We've had times when we had a ton of outgoing expenses (two in daycare) but solid salaries. It was stressful but survivable. Now we're in a situation where it's precarious. I'm in my early 40s. The crap has hit the fan. I don't recall exactly when I started maxing out my 401k but I think it was when I was 24. It's hard for me to pull back. But, perhaps needs must.

[Anonymous]

Student loans at 6.8% (darn Congress for setting rates so high)

[Anonymous]

I was able to do this last year, but this year am putting 0% into 401k due to needing to take unpaid maternity leave. We just need the income. I hope to resume once this temporary stage is over.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Because i really cannot afford to defer 18k of income at this stage in my life. Most people are this way.

+1 not sure how honest your question really is OP.

Same here.

[Anonymous]

Similar - I never went below my employer's match, but had a few skinny years where we weren't going to subsist on ramen since with daycare our monthly expenses were so high. Realizing that may mean we have ramen days in retirement, but it's a trade-off.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because i really cannot afford to defer 18k of income at this stage in my life. Most people are this way.

+1 not sure how honest your question really is OP.

Same here.

Yup. My husband and I each put in about half of the max right now, with two daycare fees, and I feel fantastic about it.

[Anonymous]

Anonymous wrote:Is it really that inconceivable that not everyone's budgets allow them to max out their 401k every year?

I think a better question would have been to direct that at high income people. Obviously someone making 100k or less might not be able to contribute max, but what baffles me is upper income people making 150k+ not contributing the full amount, or even worse those in the 250k range.