Author Topic: Hit my Max Pretax 401k today.... WHOOOHOOOO  (Read 726 times)

texxan1

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Hit my Max Pretax 401k today.... WHOOOHOOOO
« on: March 16, 2017, 03:41:30 PM »
So i wasnt paying attention to my paychecks from my employer because they go strait to a savings account and i live on cash from my side gig.... Its bonus time of year and i just looked at my paystub and it looked kinda funny... I was trying to decipher how they paid me, and i finally figured it out.... $7999 went strait to 401k pretax..... that made me hit the max pretax for the year... So stoked

Now the question is do i keep putting away the amount i do, which is 45% right now, or do i get the compay match only and invest outside of the traditional 401... :???? Thoughts guys.

seems to me since it will be after tax, it would be best to put in my new vanguard account....

Tex

sparkytheop

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Re: Hit my Max Pretax 401k today.... WHOOOHOOOO
« Reply #1 on: March 16, 2017, 06:48:01 PM »
Yours must work a different way... I only get the company match for every paycheck I contribute to my pre-tax (or, if a Roth, then the match would go to the IRA).  If I max out early, I lose the match (the 4% above the auto 1%) for the rest of the year, so I make sure to never max early.  If it's maxed, and the auto 1% keeps getting put in, I'd be afraid I'd have to withdraw the extra and have to deal with issues from that.

But, if yours works otherwise, congratulations.

katsiki

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Re: Hit my Max Pretax 401k today.... WHOOOHOOOO
« Reply #2 on: March 16, 2017, 07:17:38 PM »
I'm not sure what you are saying / asking.  Did you hit the max to get the company match or the max of a 401k?

carstenjames

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Re: Hit my Max Pretax 401k today.... WHOOOHOOOO
« Reply #3 on: March 17, 2017, 01:57:00 AM »
Check if your company has a "mega" backdoor roth option.  This allows you to contribute up to $54,000 to a 401(k) as an after-tax contribution.  The limit is basically 54k - employer contribution - pre tax / roth 401(k) contributions.  After you leave your company you can convert it to a Roth IRA and only pay taxes on the additional growth OR if your company allows it you can do an in-service withdrawal which allows you to convert to a Roth IRA immediately and let that money grow tax free.

See: http://www.madfientist.com/after-tax-contributions/ for more details

aperture

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Re: Hit my Max Pretax 401k today.... WHOOOHOOOO
« Reply #4 on: March 18, 2017, 08:54:33 PM »
Just finished my tax deferred accounts for 2017 too.  Now the fat paychecks start rolling in and I have to figure out what to do with the dollars. Not really - already have a plan in place.  Best wishes to all, Ap.