Anonymous
Post 01/12/2015 00:03     Subject: "maxing out" TSP, 401, etc.
Anonymous wrote:
Anonymous wrote:
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.



Maxing out 18k pretax on a 90k income is easy.


When you have 2 kids? A mortgage? Transportation costs?


All of these pasters with ~90k incomes and 'maxed out TSP' bought before the housing bubble.

There's nothing magical to living well when you have low housing costs and short commutes; it's like living in the Midwest

They just had good timing, and not something someone starting out now can replicate without serious compromises for their family (safety, etc)
Anonymous
Post 01/11/2015 23:26     Subject: "maxing out" TSP, 401, etc.
Anonymous wrote:
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.



Maxing out 18k pretax on a 90k income is easy.


When you have 2 kids? A mortgage? Transportation costs?
Anonymous
Post 01/11/2015 19:28     Subject: Re:"maxing out" TSP, 401, etc.
For us, it means we each contribute $30,500 - max 401(k)+ max IRA for those 50 and older. Does not include employer contributions.
Anonymous
Post 01/11/2015 13:10     Subject: "maxing out" TSP, 401, etc.
Anonymous wrote:PP, what are your tax exemptions set at?

To the other poster, maxing also means paying significantly less taxes.


I'm the pp above you. Married with 3 exemptions for state and federal. In VA which also matters some. When we moved here from MD state withholding went down.
Anonymous
Post 01/11/2015 12:38     Subject: "maxing out" TSP, 401, etc.
Anonymous wrote:PP, what are your tax exemptions set at?

To the other poster, maxing also means paying significantly less taxes.


I think Married but withholding at single higher rate, no children

Anonymous
Post 01/11/2015 09:17     Subject: "maxing out" TSP, 401, etc.
PP, what are your tax exemptions set at?

To the other poster, maxing also means paying significantly less taxes.
Anonymous
Post 01/10/2015 23:36     Subject: Re:"maxing out" TSP, 401, etc.
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:how do people afford to contribute 18k when at a fed gs12 or 13 salary?


I didn't manage until I was at a 13 step 4. I did it mainly by just upping my contribution whenever I got a step or we got a COLA. Never missed money I never saw.


18k over 26 pay periods is almost $700/check. that's impossible on a $1800-2000 paycheck.


GS-13/4 here, not sure where you came up with that income. im at that grade and step and my take home after all benefits AND 600/month TSP loan repay is in the 1800's. Without that loan I'd be around 2450 and that's with the FSA maxed out. Now if you're trying to save for a house down payment then clearly you can't afford to max the TSP.
Anonymous
Post 01/10/2015 22:54     Subject: Re:"maxing out" TSP, 401, etc.
Anonymous wrote:
Anonymous wrote:how do people afford to contribute 18k when at a fed gs12 or 13 salary?


I didn't manage until I was at a 13 step 4. I did it mainly by just upping my contribution whenever I got a step or we got a COLA. Never missed money I never saw.


18k over 26 pay periods is almost $700/check. that's impossible on a $1800-2000 paycheck.
Anonymous
Post 01/10/2015 22:04     Subject: Re:"maxing out" TSP, 401, etc.
Anonymous wrote:how do people afford to contribute 18k when at a fed gs12 or 13 salary?


Just do it. There are many ways to do - adjust your other money going out.
Anonymous
Post 01/10/2015 21:16     Subject: "maxing out" TSP, 401, etc.
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.



Maxing out 18k pretax on a 90k income is easy.
Anonymous
Post 01/10/2015 21:15     Subject: Re:"maxing out" TSP, 401, etc.
Anonymous wrote:how do people afford to contribute 18k when at a fed gs12 or 13 salary?


I didn't manage until I was at a 13 step 4. I did it mainly by just upping my contribution whenever I got a step or we got a COLA. Never missed money I never saw.
Anonymous
Post 01/10/2015 20:29     Subject: Re:"maxing out" TSP, 401, etc.
how do people afford to contribute 18k when at a fed gs12 or 13 salary?
Anonymous
Post 01/10/2015 20:22     Subject: "maxing out" TSP, 401, etc.
One would have to make 375K to max out at 5%.

I don't max, but I contribute 10%. Have to before I'm 40 (31 now).
Anonymous
Post 01/10/2015 17:22     Subject: "maxing out" TSP, 401, etc.
DH SEP-IRA is limited to 10% but employer funded
Anonymous
Post 01/10/2015 15:22     Subject: "maxing out" TSP, 401, etc.
Anonymous wrote: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.



If your 401K plan isn't a safe harbor plan, highly compensated employees can be limited in what they can contribute.