Hey gang!
So, I'm finally eligible to contribute to my companies 401(k) plan in November of this year (November 3rd or something like that). I make $55/hour, so if i don't take any time off (this would need to include thanksgiving, christmas, etc), i will be JUST short of hitting the $18k max.
I talked to my manager yesterday about this (because i'm a contractor, and my contract is in the process of being renewed - it originally ended in August), and she informed me that she thinks i am only eligible to start contributing in June or December - the "open enrollment" periods for their 401k, even though I become eligible per the plan document in November (1 year anniversary).
If i can't contribute until December 1, i asked if they could withhold my pay starting in November to dump it all in the 401k in December, and then keep contributing through the end of the year. They weren't sure they were allowed to do this. My only other thought is for me to take a "voluntary pay cut" for the next few months, then increase my salary by the amount i was cut by to hit the $18k with just November and December salary. This seems risky because i could take the pay cut until november/december, and then they could fire me and I would just be out the difference i was expecting, plus then i'd be giving my company an interest free loan on my potential 401k savings.
Anyone else have any suggestions or funny math to make this work? Can I make a 1-tim after-tax contributions to my 401k in December, but count them as before-tax on my income tax? Any math to make this work would be appreciated.