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

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[quote=Anonymous][quote=Anonymous][b] “max out” depends on the situation of the individual.[/b]

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.  [/quote]

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.

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