These plans are perfect in the event you intend to sock away big sums. A person 401(k) enables you to save for retirement each as an employer and an employee, frequently enabling you to contribute greater than could be feasible with other retirement plans.
Here's how: As an employee, you are able to stash away as a lot as $16,500. Because the boss, you are able to contribute an extra 25% of compensation, as much as a maximum of $49,000, such as your employee contribution.
These contributions are discretionary, so you are able to save the maximum in flush years and absolutely nothing in tougher occasions. In the event you as well as your spouse are each within the strategy and appreciate a banner year, you can save a total of $98,000. And if you're each 50 or older and eligible for catch-up contributions of $5,500 every, the total climbs to $109,000.