Friday, November 16, 2007

Upping my 401k contribution

I need to put more money away for retirement but I also want to reduce my potential IRS Tax Debt. I owed the IRS 2 years ago and it was a mess. They threatened me with a tax lien for less than $1k. Don't get me wrong, it was my fault I owed the debt but they came after me like gang-busters!

Of course, the most important reason to raise my 401k allotment is to put away more money for retirement. I cashed out my account when I left my last job so it's like I'm starting all over now. Right now I'm only saving 3% but I'll raise that by a percent or two when I get my job increase next month. Then when I get my annual increase, I'll raise it again to 6 or 7%. Anything to avoid the tax man.

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