Payroll Deductions Into a 401k Plan is a Good Way to Start an IRA Account
Payroll deductions are a fact of life in this grand ole country of ours and you actually do have some control of how much and where some of your deductions go or are distributed.
Unfortunately many of us don't take the time to be proactive in regulating our payroll deductions in a way that could and will benefit ourselves.
One key area is in payroll deductions into a 401k plan.
While saving for retirement is always recommended, very few, nationwide, take that initiative to set aside a few dollars per week for their retirement.
If your company employer offers 401k payroll deductions, it's really an easier means of putting a little aside for your future, when doing a physical job may become a bit more than you can continue to do and when retiring gets closer than you think.
Payroll deductions for 401k are tax deferred and subject only to FICA.
The IRS regulates how much you can have deducted for 401(k) payroll deductions out of your paycheck.
In 2007 the limit was $15,500.
If you are over 50, you could make a catch up contribution, that could be increased by $5,000 making the total allowable deferral for the year 2007, $20,500.
Not many can afford that much deducted for a 401k plan per year but seriously look at what you can do and consider how long you plan to work and what you feel you will need set aside for your retirement.
The cold hard facts are, it's your money and you can spend it all now or spend some now, for later.
By taking advantage of a payroll deducted 401k plan, can affect your net take home pay in a very small way, but the benefits later in life can make the difference in how long you have to work and who you hope will be there to take care of you financially later.
Unless you are banking on a windfall from a lottery or a rich relative, we all will need some means of income later in life when or health or well being is beyond our own personal control.
Take the time now to enroll in a 401k payroll deduction, it's a smart move to make and one that you'll be glad you did.
For more about how to start an IRA account: http://wealthsmith.
com/your-ira-401k.
htm
Unfortunately many of us don't take the time to be proactive in regulating our payroll deductions in a way that could and will benefit ourselves.
One key area is in payroll deductions into a 401k plan.
While saving for retirement is always recommended, very few, nationwide, take that initiative to set aside a few dollars per week for their retirement.
If your company employer offers 401k payroll deductions, it's really an easier means of putting a little aside for your future, when doing a physical job may become a bit more than you can continue to do and when retiring gets closer than you think.
Payroll deductions for 401k are tax deferred and subject only to FICA.
The IRS regulates how much you can have deducted for 401(k) payroll deductions out of your paycheck.
In 2007 the limit was $15,500.
If you are over 50, you could make a catch up contribution, that could be increased by $5,000 making the total allowable deferral for the year 2007, $20,500.
Not many can afford that much deducted for a 401k plan per year but seriously look at what you can do and consider how long you plan to work and what you feel you will need set aside for your retirement.
The cold hard facts are, it's your money and you can spend it all now or spend some now, for later.
By taking advantage of a payroll deducted 401k plan, can affect your net take home pay in a very small way, but the benefits later in life can make the difference in how long you have to work and who you hope will be there to take care of you financially later.
Unless you are banking on a windfall from a lottery or a rich relative, we all will need some means of income later in life when or health or well being is beyond our own personal control.
Take the time now to enroll in a 401k payroll deduction, it's a smart move to make and one that you'll be glad you did.
For more about how to start an IRA account: http://wealthsmith.
com/your-ira-401k.
htm