Dad’s first paycheck which takes out the maximum retirement contribution for the year has hit our bank account. I was pretty close with my estimate, almost exactly $250 less per paycheck. It slows down our debt repayment somewhat, but not significantly, We’re still looking at July/August to have all of the student loans paid off. In the meantime, we’ll have at least one fully funded retirement account! And the amount taken out of each paycheck will be slightly more this year than on next year’s paychecks since we weren’t taking out the max for the previous 5 paychecks, the system “makes up” for it throughout the remaining paychecks.
Now, to just (impatiently) wait until July/August to increase my 401(k) contribution. Changing mine now could put us in a serious cash flow crunch while paying off debt because I’m only putting 6% in and could be putting as high as 17% in – that’s almost $1000/mth difference. But once the student loans are paid off, we’ll be able to do it easily!
Nice! That’s awesome to be maxing out one now, and another by the end of the year. Future you will definitely thank you!
I’m really hoping that future me appreciates the sacrifice!
Keep up the saving! I do a 75% deduction, but it is over by the end of February or mid March. Sort of like pulling a band aid.. Ouch for a coupe of months, then it’s over!