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Learning, Sharing, and Teaching => Investor Alley => Topic started by: ctuser1 on August 14, 2019, 02:16:58 PM

Title: 401k over-contribution issues, repeating the same warning I posted over at BH
Post by: ctuser1 on August 14, 2019, 02:16:58 PM
<This is a very US specific issue>

Since this board is full of over-savers, I thought I'll repeat here what I posted over in bogleheads a few months ago.

Basically, if you over-contribute to 401k such that you go over the limit before the Dec 31 paycheck, then you may not be getting the full employer match you *could* get if you stretched out the contributions till the Dec 31 paycheck!!

Some employers have a "true up" process

For more details, nuances, and discussion - maybe you can look at the bogleheads thread (are we allowed to link it?): https://www.bogleheads.org/forum/viewtopic.php?f=2&t=280331

Title: Re: 401k over-contribution issues, repeating the same warning I posted over at BH
Post by: RWD on August 14, 2019, 02:30:33 PM
Yup, this comes up quite often here.
https://forum.mrmoneymustache.com/investor-alley/max-out-401k-in-the-first-3-months-of-the-year/
https://forum.mrmoneymustache.com/investor-alley/maxing-your-401k-contribution-employer-match/
https://forum.mrmoneymustache.com/welcome-to-the-forum/401k-scenario-question(maxing-it-out-early)/