I'd like an extra set of eyes on a question about how to optimize retirement contributions and employer match across multiple plans at multiple employers.
January-August I worked for a university and contributed to a 403b without an employer match. Was on track to use 100% of my contribution space, so used about 2/3rds of it.
September-December I am working for a company with a 401k that matches my contributions at 50%.
401k/403 share the same $20,500/year limit, so if I contribute at the same rate, I can only contribute ~$7,000 to my 401k and get only about $3,500 in employer match this year.
If I up my contributions a lot and contribute $20,500 to my 401k account with my , I'd receive $10,250k in employer match (~$7,000 of extra money), but have a substantial aggregate over contribution considering my 403b and 401k accounts across two employers.
It looks like I would have until April 15th to withdraw the correct that by withdrawing the excess contributions. If so, I should be able to contact my old employer and ask them to reverse my contributions to my 403(b) plan made earlier in the year.
Should this work? Are there foreseeable landmines this could set off and or brick walls I'm likely to run into that make it not worth trying for what is ultimately not a life changing amount of money?
