When we decided to move 5 years ago, we took out a $15,000, 5-year loan from The Husband's 401k. We were living in a 2 bedroom, 1 bathroom house with a 12 year old boy and an 11 year old girl... we had to do something!
I am so happy to say that the loan will be paid off very soon! One month from today (2 paychecks) and we will be 401k loan free! I'm super excited about it being paid off! Because it is a 401K loan, that is obviously through no extra effort of our own, but it will still be paid off!
Once it is paid off, The Husband is going to adjust his 401k contributions to increase by 1% so that he will max out at the full $20,500 limit. He maxed out last year at $19,500 and that small adjustment should have him maxing out again. We are very lucky that he works for a company that also gives a 3% match and 6% profit sharing. All told, he (and his company) are contributing about 28% of his yearly salary to retirement.
The rest of the 401k payment will just be absorbed into our every day budget. And truth be told, we can use an extra $100 a month or so! With one senior and one junior in the house, school costs are crazy!
The Husband's yearly review is coming up soon too. He generally gets at least a 3% raise. We are actually hoping for a little more this year. Any increase he does receive will most likely go towards increasing contributions to my 403b. I contribute $1400 above and beyond what is taken out for my pension every month. My school district runs on an 11 month cycle so I put away $15,400 towards retirement and would love to increase that if The Husband gets a raise! We are slowly trying to inch our way up to maxing me out, too!
I'm so excited to have this loan paid off and to increase contributions towards our future! I have said before that we are super far behind and trying to play catch up, so every little increase helps!