Author Topic: Thought I was maxing out my SIMPLE IRA and HSA, but wasn't!  (Read 1668 times)

thepokercab

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Thought I was maxing out my SIMPLE IRA and HSA, but wasn't!
« on: November 25, 2013, 12:42:56 PM »
Hi All- 

So, when I discovered MMM and this forum earlier in this year, I finally starting taking advantage of the SIMPLE IRA and HSA that I could contribute to, pre-tax, with every pay check.  I promptly talked to HR and asked them to set it up so that I would max out both of these accounts in 2013. Between both of them, I about 30% of my gross pay was being deducted, so I thought I was golden...

However, I started doing some pre 2014 tax preparing, and noticed that I seemed to be coming in short of what my maximum yearly contribution should be.   Sure enough, i talked to HR and it seems that when they calculated how much to deduct from my pay check earlier in the year, they didn't take into account the two or so payroll cycles it took for it to go into effect. Not surprisingly, she told me that she didn't have a lot of experience with employees wanting to max out these accounts! 

Anyway, i made a mistake by not tracking this a bit more carefully, so just wanted to share with folks.  If there is any doubt (especially with how great the market has been this year) make sure you really are maxing out your retirement accounts at work if you intend to!!   

On another note, almost my entire final paycheck of 2013 will be deducted into my SIMPLE IRA and HSA.  I have to admit that its pretty nice that I can do this, and not have to worry at all about losing a whole paycheck!

 

Wow, a phone plan for fifteen bucks!