Nest Egg Building The Motley Fool Online (01/31/02) Vol. 8, No. 1 p.9; Brannen, Laurie
Knowing how much money to put into a 401(k) plan requires that investors know themselves. Under the law, the maximum amount a person can defer into a 401(k) is $10,500 for the year 2000, and most plans allow up to 20 or 25 percent of a worker's salary. Deferring every dollar through a 401(k) plan works for most people, but some people believe they would do better investing outside of their 401(k), so knowing which way to go depends on the investor. Some people are disciplined and are good at making regular investments, others are not. Having their retirement funds automatically taken out of every paycheck is a good option for people who are less disciplined.