I think you mean, "how much should I contribute from each paycheck to a 401(k) plan."
I recommend to my clients to save 15% of gross income each year. When you first start saving, it may be difficult to save 15%, but start with a number that is comfortable.
You should save until you have 50% of one years income in safe savings, money market, CD's, Credit Union, etc. Then take 7% and put it into a 401(k) and the remaining 8% into a balanced investment plan.
The reason for this is you do not want to have all your retirement savings dollars in a qualified retirement plan. If you over fund your 401(k) you can wind up with higher taxes to pay durning retirement and you are giving the government control of your retirement plan. They tell you how much to take during retirement whether you need the money or not and thus control how much tax you will pay.
Contributions to a 401(k) is not a tax deduction like an IRA. The contribution comes out of your pay before you receive it, pre-tax and then is deposited in the 401(k).
With the IRA, you take after tax money and put it into the IRA and then write the contribution off on your tax at the end of the year.
Source: http://askville.amazon.com/percentage-typical-401K-deduction/AnswerViewer.do?requestId=87216009
I recommend to my clients to save 15% of gross income each year. When you first start saving, it may be difficult to save 15%, but start with a number that is comfortable.
You should save until you have 50% of one years income in safe savings, money market, CD's, Credit Union, etc. Then take 7% and put it into a 401(k) and the remaining 8% into a balanced investment plan.
The reason for this is you do not want to have all your retirement savings dollars in a qualified retirement plan. If you over fund your 401(k) you can wind up with higher taxes to pay durning retirement and you are giving the government control of your retirement plan. They tell you how much to take during retirement whether you need the money or not and thus control how much tax you will pay.
Contributions to a 401(k) is not a tax deduction like an IRA. The contribution comes out of your pay before you receive it, pre-tax and then is deposited in the 401(k).
With the IRA, you take after tax money and put it into the IRA and then write the contribution off on your tax at the end of the year.
Source: http://askville.amazon.com/percentage-typical-401K-deduction/AnswerViewer.do?requestId=87216009
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