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Monday, November 19, 2012

Task 24 – Increase my 401(k) contribution to 10%

Working part time at Sur La Table definitely has its perks. Not only do I really enjoy working with the people but it is a great opportunity to cover some of the expenses that dipped into my savings over the last year.  Another benefit of a part time job like this is that they offer their seasonal & part time employees the option of enrolling in their 401(k) plan. They also offer 50% match on the first 4% which is better than my full time job. Given that the income I receive from this job is purely gravy I thought I might as well contribute as much as possible to my retirement and at the very least enough to get the match.  To start I am going to contribute 10% of my Sur La Table income to my 401(k) but as soon as I have re-filled my savings account with the money I spent over the year I am going to up my contribution to max pre-tax allowed.

Hopefully like a money tree some of the money I sow today will yield a retirement where I don’t have to worry about money. That is after all the purpose of a 401(k) plan. My plan is to contribute the max allowed. If I did that this year it would be $17,000 pre-tax dollars. I won’t come close to that unfortunately.

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