Author Topic: Maxing out 403B  (Read 825 times)

homelesshobbit

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Maxing out 403B
« on: October 19, 2018, 04:57:43 PM »
Ok, so we want to max out a 403B in 2019 spread out over the year but my wife is a nurse and the paycheck is different all the time with so many differentials.

Does anyone know what putting a number in the Desired Election box will do? Is that how much it will draw per paycheck regardless of her pay amount?

Should I put $711.53 since she gets paid 26x a year to get it to 18,499 since I do want to max it out but I don't want to keep messing with an Election %.

thank you


terran

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Re: Maxing out 403B
« Reply #1 on: October 19, 2018, 06:49:38 PM »
Yes, it would seem that the "Desired Election" box with a $ sign in front of it will be the per pay period about you want contributed. I haven't seen it from an official source yet, but the projections I've seen are that the 401(k) salary deferral limit will be going up to $19k in 2019, so you would want to put in $730.76. Your wife's employer will most likely reduce the final contribution rather than let her go over the limit, so you don't need to be super careful about coming in just under the limit.

homelesshobbit

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Re: Maxing out 403B
« Reply #2 on: October 19, 2018, 07:12:54 PM »
oh ok, well that is pretty cool! thank you.

chasesfish

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Re: Maxing out 403B
« Reply #3 on: October 20, 2018, 06:17:24 AM »
Do you have cash savings?  If so, I'd put $18,500 and max out the 401k as early as possible in the year

not_a_trex

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Re: Maxing out 403B
« Reply #4 on: October 20, 2018, 10:53:45 AM »
Do you have cash savings?  If so, I'd put $18,500 and max out the 401k as early as possible in the year

You need to be careful with front loading. Some employers will only match contributions (If they match at all. It's not clear here, especially since we're talking about a 403b. I hear less about matching in schools, which I'm guessing OP's wife works in) on paychecks that you contribute to your plan in. So if you front load your tax-deferred account 6 months into the year you'll miss out on the matching contribution the second half of the year.

In the general case, if your employer matches retirement contributions it's worth checking with HR to see if they will honor the match after you front load your account. If they will or they don't have matching at all, then front loading is fine. If not, then find an amount that would have you contribute every paycheck throughout the year.