The Money Mustache Community
General Discussion => Share Your Badassity => Topic started by: ysette9 on July 11, 2019, 02:39:34 PM
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I just noticed that my paycheck hit and for the first time this year it was actually a reasonable amount (4 figures instead of low 3). This means that I have officially maxed out all 401k space for the year. Woot woot!
Last time I went on maternity leave I didn't realize that 401k contributions are not deducted from maternity leave pay, and left some contribution space on the table. I made sure not to make that mistake again by extra front loading just to be sure. I'll be rolling in the dough from here through the rest of the year. $$
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That's great! My husband's 401k gets front-loaded because he gets a bonus early in the year, so he earns about 1/3 of his annual pay by Feb 28. With what the stock market has done since Feb, I really wish we had upped it so he would have been 100% done by then! You are probably enjoying some nice gains. :)
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Boom!
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Congrats! I wish I could do the same, but my employer does not do a true-up for the match so I have to contribute all year or I lose out.
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Nice work! As I've approached FIRE I've both switched to part-time work and loaded up on all the payroll deductions. Between regular 401(k) contributions, mega backdoor Roth, HSA, health insurance premiums, and daycare FSA, I've been getting $0 net paychecks for most of the year.
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Nice job. I maxed out my 457B including catch up and also investing in my 401a, but it comes out year round.
Next year, if I'm still on track to FIRE, I'm going front-load the retirement investments so that there's very little left to go into direct deposit. I confirmed earlier in the year I could do that. That will increase my savings and reduce my MAGI for ACA.
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This is so great. I have never maxed out my contributions, but did recently raise them substantially.
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
The contribution limit is $19k, plus an additional $6k for those 50 and older, for a total of $25k.
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
The contribution limit is $19k, plus an additional $6k for those 50 and older, for a total of $25k.
($19k + $6k) is the limit for deferrals. The overall limit is indeed $56k (+$6k for those 50 or older) or your total compensation, whichever is lower. See the IRS page on 401ks (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) (in particular, read the paragraphs under the "Overall limit on contributions" heading). Also note that the overall limit is for all contributions, including "employer matching contributions" and "employer nonelective contributions."
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
The contribution limit is $19k, plus an additional $6k for those 50 and older, for a total of $25k.
($19k + $6k) is the limit for deferrals. The overall limit is indeed $56k (+$6k for those 50 or older) or your total compensation, whichever is lower. See the IRS page on 401ks (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) (in particular, read the paragraphs under the "Overall limit on contributions" heading). Also note that the overall limit is for all contributions, including "employer matching contributions" and "employer nonelective contributions."
I was wondering about that, now I understand that the addition is non deferred. What would be the benefit of putting non differed income into a 401k? Most are expensive with poor choices and it's not accessible. I guess the growth would be tax differed but a Roth would do that.
Currently I put $19k 401k, $7k IRA and anything above that taxable accounts.
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
The contribution limit is $19k, plus an additional $6k for those 50 and older, for a total of $25k.
($19k + $6k) is the limit for deferrals. The overall limit is indeed $56k (+$6k for those 50 or older) or your total compensation, whichever is lower. See the IRS page on 401ks (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) (in particular, read the paragraphs under the "Overall limit on contributions" heading). Also note that the overall limit is for all contributions, including "employer matching contributions" and "employer nonelective contributions."
I was wondering about that, now I understand that the addition is non deferred. What would be the benefit of putting non differed income into a 401k? Most are expensive with poor choices and it's not accessible. I guess the growth would be tax differed but a Roth would do that.
Currently I put $19k 401k, $7k IRA and anything above that taxable accounts.
I believe most people use after-tax 401k contributions in order to set up a Mega Backdoor Roth.* I think the most common link I've seen is to Mad Fientist's post (https://www.madfientist.com/after-tax-contributions/).
*It's not available to me, so I don't understand all the details. I'm sure someone will be along to clear up anything I got wrong/add in other reasons.
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I was wondering about that, now I understand that the addition is non deferred. What would be the benefit of putting non differed income into a 401k? Most are expensive with poor choices and it's not accessible. I guess the growth would be tax differed but a Roth would do that.
Currently I put $19k 401k, $7k IRA and anything above that taxable accounts.
I believe most people use after-tax 401k contributions in order to set up a Mega Backdoor Roth.* I think the most common link I've seen is to Mad Fientist's post (https://www.madfientist.com/after-tax-contributions/).
*It's not available to me, so I don't understand all the details. I'm sure someone will be along to clear up anything I got wrong/add in other reasons.
Thanks, just curios. Don't want to hijack the thread.
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Congratulations!
with the 2019 maximum 401K contribution limit of $62,000 (for those 50 and over), there is zero chance I will hit that, even by December/next April. But it sure is worth trying to get as close as possible.
The contribution limit is $19k, plus an additional $6k for those 50 and older, for a total of $25k.
As kingxiaodi pointed out, your comment is factually incorrect. See IRS regs here for 2019 maximum total 401K contribution limits:
https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
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Do you have a match? A lot of employers will only match if you contribute and cap their match at the 3%, 5%, 8% rate ect. At my job, if I was to max everything out by August I would miss out on 5 months of matching. This might not be a problem for you, but others should check into it!
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I am lucky in that my employer has a kick-ass 401k plan. They will give us the full match whether we front load or level-load contributions throughout the year. We have super low-cost vanguard funds. We have the in-plan Roth conversion option with auto Roth conversion (woot woot!) That means it converts my post-tax contributions automatically as soon as they hit the account so no time for the market to move and create capital gains.