Are 401(k)s "prorated" the same way that HSAs are?

[expectopatronum]

I found some old info (from 2007/2008) and I think the answer is NO, but I wanted to see if there were any Mustaches out there with other knowledge.

I'm leaving my job July 23, meaning I will only be employed for a little under 7 months this year. Can I still make the max contribution to my 401k? The HR people/benefits are not very well-educated on it; they just know they offer it. Can't find any info on the forum either.

For HSAs, I will be on my husband's HSA plan after that, so I don't think we have to worry about pro-rating the HSA contribution.

Extra info: There is no company match, husband is maxing his 401k (match up to 6%), we plan to contribute to our IRAs (Roth, I think - we like the "predictability" knowing taxes are already paid even though we will probably be living off much less in retirement), then we'll chip away at the mortgage and/or have an investment acct on the side.

[matchewed]

You generally can only contribute from your paycheck. There are after-tax contributions that can be made depending on your plan. Look through your plan documents rather than talk w/ HR.

[ZiziPB]

Yes, you can make the max contribution even if you work less than a full year.  However, you will not be able to make a lump sum contribution from sources other than your salary.  So your window of contributions is limited to the paychecks you receive between now and July 23.  The plan documents may also limit the percentage of your pay that can be contributed.

So the question is how much you have contributed so far and how much can you contribute from your paychecks between now and leaving the company?

[frugalnacho]

Can I still make the max contribution to my 401k?

Yes.  The limit is an IRS annual limit.  You could in theory earn $18,000 on January 1st, contribute it all to your 401k, then quit your job.

EDIT: The contribution must come from your paycheck though, you can't just send in a check for $18,000 from your checking account to hit the limit.

[expectopatronum]

Cool, thanks everybody. I've already put in about $10K this year, and I have another 6 weeks or so at my job @$2900/pay period, so I could just about hit max by just shoveling it all into the 401k (changing my contribution %).

We are living off one income right now, looking to downsize our living situation and car situation, and we have a healthy emergency fund, so I think it can totally be done.

[ZiziPB]

Cool, thanks everybody. I've already put in about $10K this year, and I have another 6 weeks or so at my job @$2900/pay period, so I could just about hit max by just shoveling it all into the 401k (changing my contribution %).

We are living off one income right now, looking to downsize our living situation and car situation, and we have a healthy emergency fund, so I think it can totally be done.

Yes, provided your plan doesn't limit the % you can contribute.  I have seen a lot of plans that have 20-30% contribution limit.  You need to ask your plan admin or look at the plan documents to figure this out.

[earlyFI]

Cool, thanks everybody. I've already put in about $10K this year, and I have another 6 weeks or so at my job @$2900/pay period, so I could just about hit max by just shoveling it all into the 401k (changing my contribution %).

We are living off one income right now, looking to downsize our living situation and car situation, and we have a healthy emergency fund, so I think it can totally be done.

Yes, provided your plan doesn't limit the % you can contribute.  I have seen a lot of plans that have 20-30% contribution limit.  You need to ask your plan admin or look at the plan documents to figure this out.

My max is 80% of each paycheck. Check yours.

[expectopatronum]

Cool, thanks everybody. I've already put in about $10K this year, and I have another 6 weeks or so at my job @$2900/pay period, so I could just about hit max by just shoveling it all into the 401k (changing my contribution %).

We are living off one income right now, looking to downsize our living situation and car situation, and we have a healthy emergency fund, so I think it can totally be done.

Yes, provided your plan doesn't limit the % you can contribute.  I have seen a lot of plans that have 20-30% contribution limit.  You need to ask your plan admin or look at the plan documents to figure this out.

That's interesting. I'll double check our documents.