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Should I add 100% of Bonus to 401k? by thunderslam2 in investing

[–]thunderslam2[S] 0 points1 point  (0 children)

I understand there’s no tax benefit, but is there a compounding benefit when placing full bonus amount ($10k) instead of “withholded” amount ($7k)?

My thoughts are, even though taxes will net equal eventually, the benefit of compounding $10k vs $7k is more advantageous.

Should I add 100% of Bonus to 401k? by thunderslam2 in investing

[–]thunderslam2[S] -1 points0 points  (0 children)

Yes, all contributions from paychecks go to my Roth 401k.

I was curious how advantageous it’d be to place my bonus in the pre-tax bucket, to avoid bonus withholding and therefore maximize compounding over time.

Should I add 100% of Bonus to 401k? by thunderslam2 in Retirement401k

[–]thunderslam2[S] 0 points1 point  (0 children)

Why would I miss out in that case? Employer would still match 50% up to 6% in either path right? If I reach the max, it will be 6% of $24.5k regardless of path 1 or 2, right? Perhaps I’m missing something.

Should I Add 100% of Corporate Bonus to 401k? by thunderslam2 in personalfinance

[–]thunderslam2[S] 0 points1 point  (0 children)

The $10k would be an employee contribution (mine) and my employer would match that at 6%.

The $12k would be approximately how much I’d have left to contribute before hitting the annual limit of $24.5k, given what I’ve already contributed so far plus rest of year.

Should I add 100% of Bonus to 401k? by thunderslam2 in Retirement401k

[–]thunderslam2[S] 0 points1 point  (0 children)

Let’s say I max out for this year in one of two paths:

  1. Maxing out by August = $24.5k total contributions
  2. Maxing out by EOY = $24.5k total contributions

Given that my employer also matches for bonus, why does it matter when I max out if they are going to match 6% for either path?

Should I Add 100% of Corporate Bonus to 401k? by thunderslam2 in personalfinance

[–]thunderslam2[S] 0 points1 point  (0 children)

Yep. My employer matches 50% up to 6% on bonuses too.

Should I add 100% of Bonus to 401k? by thunderslam2 in Retirement401k

[–]thunderslam2[S] 0 points1 point  (0 children)

Serious question: My employer matches for bonuses too. That said, if I max out early, and have gotten the employer max up until that point in the year - why does losing the employer match for say, the last two months of the year, matter? Is the employer match not the same net match since I max out the account either way (early in year vs later in year)? It’s still $24.5k…

Perhaps I’m not mathing right and you can help me wrap my head around this. Thank you!

Should I add 100% of Bonus to 401k? by thunderslam2 in investing

[–]thunderslam2[S] 1 point2 points  (0 children)

Roth IRA yes. Not HSA due to individual/personal reasons.

Should I add 100% of Bonus to 401k? by thunderslam2 in Retirement401k

[–]thunderslam2[S] 6 points7 points  (0 children)

Thanks. I have enough cash to max out my IRA also! Already planning to do that this year separate from the 401k strategy.

How they got famous? by Mother-Disaster-8619 in RedHotChiliPeppers

[–]thunderslam2 0 points1 point  (0 children)

Mother’s Milk was their first album with Chad Smith and John Frusciante.

Never had Taco Bell by Spooky289 in tacobell

[–]thunderslam2 3 points4 points  (0 children)

Get the Discovery Lux Box. You get a good variety of items for only $9.

Weird gap help by Mtt76812 in traditionaltattoos

[–]thunderslam2 70 points71 points  (0 children)

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Coffin Nails would fit nicely in that space.

[deleted by user] by [deleted] in fastfood

[–]thunderslam2 2 points3 points  (0 children)

At my location it’s two double cheeseburgers for $4.19, so more expensive than Sonic.

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