Review Your 401(k) Savings Plan Regularly
If you’re maxing out your 401(k) you’ll be able to increase you contribution by $500 for 2019. The new limit is increased to $19,000. If you are 50 and older the catch-up contribution amount is the same at $6,000.
I like to take this time of year to look at my 401(k) and make any changes. Our open-enrollment is always during November, so I find it a good reminder to look at my 401(k). I check on it throughout the year, but take this time to meet with the financial adviser and see if there are any adjustments that need to be made.
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The company I work for does a match on the first 5% of contributions, so I don’t want to go below this amount; but currently I’ve been focused on paying back my student loans so have not been contributing more than the match to my 401(k).
I was previously working toward public service loan forgiveness and was maxing out my 401(k). However, I changed jobs and my current employer is no longer a qualifying employer for student loan forgiveness. I am now trying to put as much money towards my student loans, so I’ve only been contributing the minimum amount to get the company match and funneling the rest towards my student loans.
Everyone’s situation is different and it is can be hard to figure what’s best. Even if the numbers look in favor of paying off your loans slowly and putting more towards retirement the psychological factor of not having students can be beneficial to some people.
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