New 401(k) "Save the Max" Calculator
New 401(k) "Save the Max" Calculator
New 401(k) "Save the Max" Calculator
Use FINRA's new 401(k) calculator to maximize your contributions in 2013.
http://apps.finra.org/calcs/1/max401k
About the Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly.
Use FINRA's new 401(k) calculator to maximize your contributions in 2013.
http://apps.finra.org/calcs/1/max401k
About the Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly.
Frank R. Cirullo |
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"It isn't what we don't know that gives us trouble, it's what we know that ain't so." -- |
Will Rogers
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- Posts: 1221
- Joined: Tue Nov 01, 2011 11:28 am
Re: New 401(k) "Save the Max" Calculator
$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
Re: New 401(k) "Save the Max" Calculator
+1.BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
OP, that is a neat one. It will come in handy at the end of November or so for me.
- Porcupine
Re: New 401(k) "Save the Max" Calculator
Yeah, I just do it in Excel or on a calculator, but it's nice to have another option if needed.
Personal Finance Blogger at [b]Sunk Costs are Irrelevant[/b] --> currently on hiatus
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Re: New 401(k) "Save the Max" Calculator
If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
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Re: New 401(k) "Save the Max" Calculator
Think about it - before anything gets placed on it's website, it is run by the attorneys and compliance. They do not want to get sued for providing advice. Instead, they can claim they were merely aiding the public in making their own calculations. You would be amazed how many people do not know basic math skills, I won't comment on English speaking skills.Beantown85 wrote:If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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Re: New 401(k) "Save the Max" Calculator
+1Grt2bOutdoors wrote:Think about it - before anything gets placed on it's website, it is run by the attorneys and compliance. They do not want to get sued for providing advice. Instead, they can claim they were merely aiding the public in making their own calculations. You would be amazed how many people do not know basic math skills, I won't comment on English speaking skills.Beantown85 wrote:If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator.
Common sense is not a common virtue.
Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.
A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.
If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
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Re: New 401(k) "Save the Max" Calculator
While I agree with this in general, are these the same people who are trying to calculate how to MAX their 401k contributions? I'm thinking that the "average" person who is interested in maxing his/her 401k is a bit above that level.NYBoglehead wrote:Common sense is not a common virtue.
Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.
A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.
If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
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- Joined: Thu Apr 05, 2007 8:20 pm
- Location: New York
Re: New 401(k) "Save the Max" Calculator
The average person interested in maxing his/her 401 contribution or who even expresses an interest in learning more about retirement planning will a)know 4th grade algebra including how to divide, b)know where the library or bookstore is, c)have access to and know how to use the internet, d)be a saver and own a bank account, e)be able to read. I say this not to be condescending but to highlight that those who use the FINRA calculator will instinctively know how to get to the FINRA website and who that organization is - that requires several of those skills highlighted above. The average wage earner is trying to figure out how to make it day to day or week to week or month to month - they are not pre-planning for when they have a little bit of breathing room. I say this from my experience with colleagues and friends. I must have been the exception, I was pre-planning before even having a job but then I didn't want to emulate the behaviors of those around me.Beantown85 wrote:While I agree with this in general, are these the same people who are trying to calculate how to MAX their 401k contributions? I'm thinking that the "average" person who is interested in maxing his/her 401k is a bit above that level.NYBoglehead wrote:Common sense is not a common virtue.
Look at all the people that do the whole "tax return pre-payments" from H&R Block et al...they are giving up 10% of their return to get the money what, a month early? The tax prepper gets an enormous return on this pre-payment and people think it is a good deal.
A lot of people also equate any sort of tax return with "I didn't have to pay any taxes this year" and fail to recognize that they just gave the government an interest free loan for the year.
If things like this were that glaringly obvious to the majority of Americans we'd all be in much better financial shape. Some people need the calculator so that they can be smacked in the face with the information. And as to basic math skills...not so basic to a lot of people.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: New 401(k) "Save the Max" Calculator
My calculation was pretty easy. I clicked the box that told my Benefits department to withhold the maximum each year.
Retirement investing is a marathon.
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Re: New 401(k) "Save the Max" Calculator
Right. So you are saying that by definition, anyone who finds this calculator won't be interested in it, because it offers no features that simple division can't handle. Anyone who could be helped by a tool for simple division, won't find or want a calculator aimed at those aiming to max their 401k. That was my initial point, saying that if they included the salary % tool it could actually be helpful.Grt2bOutdoors wrote:The average person interested in maxing his/her 401 contribution or who even expresses an interest in learning more about retirement planning will a)know 4th grade algebra including how to divide, b)know where the library or bookstore is, c)have access to and know how to use the internet, d)be a saver and own a bank account, e)be able to read. I say this not to be condescending but to highlight that those who use the FINRA calculator will instinctively know how to get to the FINRA website and who that organization is - that requires several of those skills highlighted above. The average wage earner is trying to figure out how to make it day to day or week to week or month to month - they are not pre-planning for when they have a little bit of breathing room. I say this from my experience with colleagues and friends. I must have been the exception, I was pre-planning before even having a job but then I didn't want to emulate the behaviors of those around me.
Re: New 401(k) "Save the Max" Calculator
$17500 / 26 = $673.07BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
Always good to doubel check.
Re: New 401(k) "Save the Max" Calculator
17500/26=674
This is the rounded amount being taken out of my paycheck. The twenty-sixth paycheck amount will be adjusted accordingly.
This is the rounded amount being taken out of my paycheck. The twenty-sixth paycheck amount will be adjusted accordingly.
Gordon
Re: New 401(k) "Save the Max" Calculator
Why would anyone care about the percentage?Beantown85 wrote:"If they had a section to put in gross salary, and would calculate the % you should be contributing based on contributions to date, I would think that would be a bit more useful, and not terribly difficult to add to the calculator."
Re: New 401(k) "Save the Max" Calculator
Here's the spreadsheet I use for my planning:
And in formula view:
Weekly pay fluctuates, and the two bonuses are not predictable, so I come back after each paycheck to fill in the exact amount and tweak the projections accordingly.
Objective is to front-load early in the year then ramp down to avoid hitting the max before the last pay period in order to not miss the match (there are make-right contributions, but I'd rather not wait). As the standard contributions ramp down, after-tax contributions start, and I roll the after-tax contributions to my Roth IRA every January so that there are only a couple months of gains on them.
And in formula view:
Weekly pay fluctuates, and the two bonuses are not predictable, so I come back after each paycheck to fill in the exact amount and tweak the projections accordingly.
Objective is to front-load early in the year then ramp down to avoid hitting the max before the last pay period in order to not miss the match (there are make-right contributions, but I'd rather not wait). As the standard contributions ramp down, after-tax contributions start, and I roll the after-tax contributions to my Roth IRA every January so that there are only a couple months of gains on them.
- SteelyEyed
- Posts: 389
- Joined: Sun Jun 14, 2009 10:34 am
Re: New 401(k) "Save the Max" Calculator
Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc.555 wrote:Why would anyone care about the percentage?
Re: New 401(k) "Save the Max" Calculator
Wow. That's crazy.SteelyEyed wrote:"Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc."555 wrote:Why would anyone care about the percentage?
Re: New 401(k) "Save the Max" Calculator
I don't think percentages are so uncommon. Most places I've worked, including my current employer, have used Fidelity for the 401(k) provider. To change contribution settings, you use Fidelity's web site, and it has always accepted percentages, not dollar amounts. Fortunately, $17,500/(gross salary) is also an easy computation, although I usually end up reaching the limit a bit early due to bonuses (boni?) and such.SteelyEyed wrote:Not all HR departments allow one to contribute fixed dollar amounts. Mine does not. I have to figure the percentage myself. If you are not salaried, this can be bothersome, especially if your pay fluctuates wildly due to bonuses, overtime, etc.555 wrote:Why would anyone care about the percentage?
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- Location: San Diego
Re: New 401(k) "Save the Max" Calculator
I was in the same hourly-fluctuation-percentage-only boat last year.
Remember the saying "if you have to ask how much it costs, you can't afford it"? I agree with the idea of "if you can find the finra calculator, you don't need the finra calculator"
Remember the saying "if you have to ask how much it costs, you can't afford it"? I agree with the idea of "if you can find the finra calculator, you don't need the finra calculator"
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- Joined: Tue Nov 01, 2011 11:28 am
Re: New 401(k) "Save the Max" Calculator
You got me!!Quinn wrote:$17500 / 26 = $673.07BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
Always good to doubel check.
Re: New 401(k) "Save the Max" Calculator
This is why we need a web calculatorBuckyBadger wrote:You got me!!Quinn wrote:$17500 / 26 = $673.07BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
Always good to doubel check.
- interplanetjanet
- Posts: 2226
- Joined: Mon Jan 24, 2011 3:52 pm
- Location: the wilds of central California
Re: New 401(k) "Save the Max" Calculator
My current employer uses percentages as well (provider is Schwab), and thankfully they true up their match with every paycheck, so there is no downside to contributing early. I just shovel as much as I can afford into my 401k early in the year and let the match flow in over the rest of the year. I'm glad I don't have to try to make things come out evenly.Bungo wrote:I don't think percentages are so uncommon. Most places I've worked, including my current employer, have used Fidelity for the 401(k) provider. To change contribution settings, you use Fidelity's web site, and it has always accepted percentages, not dollar amounts. Fortunately, $17,500/(gross salary) is also an easy computation, although I usually end up reaching the limit a bit early due to bonuses (boni?) and such.
Re: New 401(k) "Save the Max" Calculator
What's a doubel?Quinn wrote:$17500 / 26 = $673.07BuckyBadger wrote:$17500 / 12 = $1458.33
$17500 / 26 = $637.07
($17500 - already contributed) / 12 = $xx.xx
($17500 - already contributed) / 26 = $xx.xx
I'm not going to lie -- it never occured to me to use an online calculator for that...
Always good to doubel check.
"..the cavalry ain't comin' kid, you're on your own..."
Re: New 401(k) "Save the Max" Calculator
We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator.jbk wrote: This is why we need a web calculator
Re: New 401(k) "Save the Max" Calculator
Yes, but does it give you a 401(k) web calculator?Bungo wrote:"We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator."jbk wrote: "This is why we need a web calculator "
Re: New 401(k) "Save the Max" Calculator
For that, you have to add a dollar sign: $17500/26.555 wrote:Yes, but does it give you a 401(k) web calculator?Bungo wrote:"We have one, actually. Type 17500 / 26 into Google and it gives you the answer AND a web calculator."jbk wrote: "This is why we need a web calculator "
Result:
(US$ 17 500) / 26 = 673.076923 U.S. dollars
Re: New 401(k) "Save the Max" Calculator
Some plans make it very difficult to hit a target amount, others make it so simple.
My 401k only allows me to contribute whole percentages of my base pay. and even though we are paid weekly your changes are effective back to the 1st of the month. Bonuses also throw off the figures.
Wife's 457 account we can do half percentages or state a fixed amount 17500/26=673.07 and that is all they take no deduction from bonuses ect.
My 401k only allows me to contribute whole percentages of my base pay. and even though we are paid weekly your changes are effective back to the 1st of the month. Bonuses also throw off the figures.
Wife's 457 account we can do half percentages or state a fixed amount 17500/26=673.07 and that is all they take no deduction from bonuses ect.
Re: New 401(k) "Save the Max" Calculator
Or you can just set the contribution to the maximum allowable percentage of your check and let it roll until you hit the limit...