Author Topic: can i max out 401k before year end?  (Read 2279 times)

doneby35

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can i max out 401k before year end?
« on: November 17, 2016, 06:19:11 PM »
Not sure if i'm going to make sense but i'll do my best... i started contributing to my employer's 401k only a couple of weeks ago, so obviously I won't be able to hit the 18,000 max contribution by year end, is there a way to do that? possibly talk to HR and tell them to dedicate my entire next couple of paychecks to 401k maybe? or am i not making sense? I read a little bit about front loading but I don't think that's the same.

Dicey

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Re: can i max out 401k before year end?
« Reply #1 on: November 17, 2016, 06:38:54 PM »
Looks like you and Pug lover are thinking like mustachians. Lots of good answers there, including mine, lol.

http://forum.mrmoneymustache.com/ask-a-mustachian/dump-more-into-401k-by-living-off-savings-for-a-bit/

rpr

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Re: can i max out 401k before year end?
« Reply #2 on: November 17, 2016, 06:41:26 PM »
It depends on how much the company allows you to contribute per paycheck. Talk  to HR. In our case, in a job change towards the end of the year, we contributed almost 80% (excluding FICA taxes + Health Insurance and other withholdings).   

bridget

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Re: can i max out 401k before year end?
« Reply #3 on: November 17, 2016, 06:50:47 PM »
Yes, talk to HR/Payroll, because it depends on the company.  At my last company, I could contribute up to 50% of my paycheck.  At this company, I can contribute up to 80%.  Whether you can hit $18k on that depends on your salary, obviously.  I just started my current job a couple of weeks ago, so I have 4 paychecks left in 2016 and my salary is high enough that I can contribute $4500/check without hitting the 80% ceiling, so I'm doing that.

Note - We're all assuming that you are in fact entitled to contribute $18k at this employer (as in, you have not contributed to a different employer 401(k) during 2016).  I assume you know that it's the max for the tax year total, not per employer, but I thought I'd throw it out there just in case.

rpr

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Re: can i max out 401k before year end?
« Reply #4 on: November 17, 2016, 07:11:43 PM »

Note - We're all assuming that you are in fact entitled to contribute $18k at this employer (as in, you have not contributed to a different employer 401(k) during 2016).  I assume you know that it's the max for the tax year total, not per employer, but I thought I'd throw it out there just in case.
That is a very important point.

doneby35

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Re: can i max out 401k before year end?
« Reply #5 on: November 17, 2016, 07:28:07 PM »
Ah i didn't even see the other thread but I just read it, so what I currently contribute is 17% bi-weekly in order to max out, but since I only started 2 weeks ago, tomorrow will only be my second contribution and put me at a total of 1400 contributed, with 3 more pay periods before end of year.

Soooo let's say I talk to HR and they say I can contribute up to 50% per paycheck and then I go to the portal and increase it from 17% to 50%, will I need to worry about HR doing something on their end, maybe anything tax related? (I read something about adjust state and fed tax in the other thread)??

And finally, knowing that 50% increase for 3 remaining paychecks will only get me to $7500, is this even worth it or should I just let it go?

With This Herring

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Re: can i max out 401k before year end?
« Reply #6 on: November 17, 2016, 08:13:30 PM »
Ah i didn't even see the other thread but I just read it, so what I currently contribute is 17% bi-weekly in order to max out, but since I only started 2 weeks ago, tomorrow will only be my second contribution and put me at a total of 1400 contributed, with 3 more pay periods before end of year.

Soooo let's say I talk to HR and they say I can contribute up to 50% per paycheck and then I go to the portal and increase it from 17% to 50%, will I need to worry about HR doing something on their end, maybe anything tax related? (I read something about adjust state and fed tax in the other thread)??

And finally, knowing that 50% increase for 3 remaining paychecks will only get me to $7500, is this even worth it or should I just let it go?

If you adjust from 17% to 50%, HR will adjust your taxes automatically.  No worries there.

Yes, it is worth it!  Bump that rate up as high as it will go for 2016.  If your company matches per paycheck, just be sure to fix the rate back to normal before the first 2017 paycheck.  Check with HR to see how soon the change needs to be in before the payroll date to be effective.  At my old job, the rate took a week to make its way into our paychecks, so I had to change any deductions ideally 8 days before the paycheck in which I wanted it to take effect.

Dicey

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Re: can i max out 401k before year end?
« Reply #7 on: November 18, 2016, 03:28:49 AM »
All of this is assuming no contributions from a previous job this year, correct?

doneby35

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Re: can i max out 401k before year end?
« Reply #8 on: November 18, 2016, 08:52:38 AM »
Correct, same job, just got in late, that's all.

Melf

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Re: can i max out 401k before year end?
« Reply #9 on: November 18, 2016, 01:08:11 PM »
Check your 401K website if you have access to it.  That's where I had to make my contribution amount selection.  As others have said, the % allowed per pay period varies by company.  Mine allowed as much as 80% per check.  I bumped mine up the last few paychecks in order to max out my catch-up contribution for 2016 after I found out that I was selected for a severance package offering.  I managed to max it out minus a few dollars on my last regular paycheck.