Author Topic: Maxed out 401k then switched jobs. Any way to get a match?  (Read 546 times)

hgjjgkj

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I think there is no hope but wanted to ask. I maxed out my 401k in March. Switched jobs in May. I won't get a match from job 1. From job 2 is there anyway?

I called fidelity and they said no after tax contributions allowed with the plan. I think all hope is lost but wanted to confirm

dandarc

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Re: Maxed out 401k then switched jobs. Any way to get a match?
« Reply #1 on: May 31, 2019, 04:45:19 PM »
What does job 2's plan say happens to the match if you have a withdrawal of excess contributions?

dandarc

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Re: Maxed out 401k then switched jobs. Any way to get a match?
« Reply #2 on: May 31, 2019, 04:47:34 PM »
Actually - contribute to plan #2 and request a refund of excess contribution from plan #1 might do the job.

PDXTabs

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Re: Maxed out 401k then switched jobs. Any way to get a match?
« Reply #3 on: May 31, 2019, 08:32:54 PM »
As far as I know, the only penalty for over-contributing to your 401k is double taxation. That is, you will pay taxes on the portion that you contributed over $19K when you file your taxes, and then again when you withdraw from the account. To get a match, this is worth it. However, after you over-contribute you could try to get the excess amount out of the first plan.

https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-401k-plan
https://www.investopedia.com/ask/answers/158.asp

hgjjgkj

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Re: Maxed out 401k then switched jobs. Any way to get a match?
« Reply #4 on: June 02, 2019, 09:53:02 AM »
As far as I know, the only penalty for over-contributing to your 401k is double taxation. That is, you will pay taxes on the portion that you contributed over $19K when you file your taxes, and then again when you withdraw from the account. To get a match, this is worth it. However, after you over-contribute you could try to get the excess amount out of the first plan.

https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-401k-plan
https://www.investopedia.com/ask/answers/158.asp

So its really no penalty at all then? a normal after tax investment is taxed on income earned (as its after tax) then taxed again when a position is sold? I read the links and they are super helpful but want to confirm understanding.

how long do you think i have to let the excess contribution "sit" to get my match and make a request to get the excess back?

dandarc

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Re: Maxed out 401k then switched jobs. Any way to get a match?
« Reply #5 on: June 02, 2019, 10:09:24 AM »
On an excess contribution that is removed immediately, you pay tax twice on the whole amount.

Whereas with an after-tax contribution (if your plan allows them), you pay tax on the whole amount up front, and the earnings only on withdrawal.

Your best bet is to contact your old employer about the excess contribution once you've made it. You said there is no match to lose there.