Reply to Anyone NOT maxing out your 401(k) even though you're making decent money?

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[quote=Anonymous]DH and I are both 47 years old.  HHI is about $340,000 (which is a recent improvement in 2014 after I returned to work full-time and got promoted).  Before that, when I worked part-time, our HHI was closer to $200,000.

During the years when I was a SAHM or worked part-time, we had some unexpected expenses and began helping some family members with their bills.  Thankfully, those family members have all gotten back on their feet and no longer need our financial help.  Also, we were paying out of pocket for various therapies for 2 of our 3 kids, who have special needs.

In a nutshell, we have decent retirement savings (combined $1 million), but no other savings (except our emergency fund of $40,000 in a savings account, and the college funds which are totally separate).

We have always tried to max out our 401(k)s because we always read that it was crazy not to do so.

However, we'd now like to do an expansion of our small house because we really think it would improve our quality of life.   We have nothing saved for it.  We have a mortgage on our house ($330,000 mortgage and house is worth $800,000), and perhaps we could refinance and get a HELOC?  Or we could do a 401(k) loan.  But we'd really like to have some money available that does not involve a huge penalty to withdraw.

Perhaps we could try to save for it?  It would mean NOT maxing out our 401(k)s though.  DH gets a match of 5% (not dollar for dollar) and I get a match of 9% (dollar for dollar).  I was thinking of asking DH to cut back on his contributions, since I get more of a match (about $16,000).  Also, DH has more in his 401(k) than I do because he's always been working full time.  Also, DH is a federal employee and so will get an annuity of about $2000 per month upon retirement (assuming he stays at least another 15 years, which he probably will), and so perhaps we don't need as much in his 401(k).

Do any financially responsible people with decent incomes NOT max out their 401(k)?  Do you put money in accounts where you can touch the money.  I'm just wondering if we're the only ones who have saved decently for retirement, but have no other savings (other than an emergency fund and college savings).[/quote]

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