The IRS made a few changes this year you should be aware of that will impact how much your putting away into your 401K and Roth IRA. If you haven't started doing this I suspect you need to start thinking about retirement and putting money away (Age dependent). There are no real safety nets when we look out 20 years to when many in my generation begin to retire. So...expect to take care of business now so your not stressed later (time is your friend if you start now.)
The other day one my children received his first pay check....I gave him advice. Its not great advice but its reasonable. I heard the same thing but didn't understand its importance in my late teens. Take 10% and start putting it away every check. If you do that now he will be a wealthy man by the time he is say 50 years old.
Far too many people wait too long to think about retirement.....and then its too late.
I get it and I been there. Kids need things, car is broke, concerned about bills, etc..... The best way to to this in hindsight is to have it taken out right away when you get paid before you receive a penny. Life is easier when you have retirement and a savings cushion.
I'm not an accountant so that is my disclaimer....but I think its helpful to share a few thoughts.
IRS announces 401(k) limit increases to $20,500-Includes 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan.
-The limit on annual contributions to an IRA remains unchanged at $6,000.
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