401k

[Nash643]

AI can't help me and HR was about as useful, so I came to ask a bunch of gun toting rednecks instead…

401k max contributions for employees are 23500 this year. My employer maxes me out at a percentage that won't allow me to hit my max, yes they match, but different conversation.

My questions are…. Why would they put a max % and is there a way around it with pre tax dollars, if I'm going to use post tax I'll just invest that myself?

 

[ObiJohn]

You can put up to a max of $23000 (+$7500 if you're 50 or older). The employer contribution is extra (not part of these limits). However, the money must come from your paycheck... you can never put more than your paycheck in. If you can afford it, divide $23K by the # of pay periods left in the year and that, or your gross salary, is the most you can contribute per pay period.

Obviously, it's best to contribute $23K over the year instead of playing catch-up towards the end, but if you're making near the average salary putting almost $2K per month away is not viable, and not advisable. You need some post-tax savings for emergencies and for larger purchases, e.g., an eventual downpayment on a house or car.

Google Dave Ramsey for good advice on setting up sustainable financial strategies that will enable you to retire wealthy, and enjoy your life along the way.

 

[JTH]

It's been awhile since I've dealt with this and the laws are always changing, but they may be limiting your contributions to avoid the plan becoming top heavy. If too large of a percentage of the overall plan funds are comprised of contributions from highly compensated employees (that definition isn't as high as you'd think) the fund is unbalanced, which can create consequences for the plan (potentially having to refund contributions from these individuals, or make company funded contributions to the balance of employees to get the plan back in balance). Many companies use auto enrollment to try and prevent this from becoming an issue, as surprisingly few people will sign up for this important benefit on their own accord.

 

[Huntaddict]

AI can't help me and HR was about as useful, so I came to ask a bunch of gun toting rednecks instead…

401k max contributions for employees are 23500 this year. My employer maxes me out at a percentage that won't allow me to hit my max, yes they match, but different conversation.

My questions are…. Why would they put a max % and is there a way around it with pre tax dollars, if I'm going to use post tax I'll just invest that myself?

My question is - why do you want to hit your max through company contributions? Do you need the tax savings from your paycheck to offset some other tax situation? It often sounds like a great idea, which if you need the tax savings, it can be but most people do not change tax rate % based on their 401k contribution.

Many advisors will coach to be mindful when putting more $ in than the company match. This is dependent on type of plan and how the plan invests the dollars. Many employer plans would not be classified as aggressive or customized to the client, they are boiler plate. So you may be contributing to a plan that receives lower growth rates than benchmarks. Are you familiar with how your $ are invested?

Is your 401k traditional or roth? Does your employer offer Roth option for single filers under a 150k magi or 230k as a couple? If so, I would put all you can into the plan so that you get tax free growth and tax free withdrawals after 59 1/2. If it makes sense.

If traditional, there may be more appropriate ways to increase retirement income outside of your employer plan with the difference in $$ amount

Do you have any other investments? Any whole life? Any self directed investments? May want to see and advisor and maximize and diversify your tax situation.

 

[FEENIX]

AI can't help me and HR was about as useful, so I came to ask a bunch of gun toting rednecks instead…

401k max contributions for employees are 23500 this year. My employer maxes me out at a percentage that won't allow me to hit my max, yes they match, but different conversation.

My questions are…. Why would they put a max % and is there a way around it with pre tax dollars, if I'm going to use post tax I'll just invest that myself?

If you are just starting out the key is to start and keep it going. Not everybody is able to or have the discipline to do so. II have been investing in my retirement since 1980. I am retired military and working on my second retirement from the civil service. I have been maxing out my TSP since 2007. I can retire now, but my soonest target date is April 2027; that would give me 40 years of mil-civ combined service. Good luck!

 

[Muddybuddy]

AI can't help me and HR was about as useful, so I came to ask a bunch of gun toting rednecks instead…

401k max contributions for employees are 23500 this year. My employer maxes me out at a percentage that won't allow me to hit my max, yes they match, but different conversation.

My questions are…. Why would they put a max % and is there a way around it with pre tax dollars, if I'm going to use post tax I'll just invest that myself?

401k

AI can’t help me and HR was about as useful, so I came to ask a bunch of gun toting rednecks instead… 401k max contributions for employees are 23500 this year. My employer maxes me out at a percentage that won’t allow me to hit my max, yes they match, but different conversation. My questions...

rokslide.com

 

[Muddybuddy]

Guys this is a future scammer getting his post count up by stealing threads form other forums.

 

[FEENIX]

Guys this is a future scammer getting his post count up by stealing threads form other forums.

If you have evidence, you should always report it to @Chris.

 

[Muddybuddy]

If you have evidence, you should always report it to @Chris.

I already did. Evidence posted 2 posts up. He copy and pasted a rokslide post.

Mods on here don't seem to have the same sense of urgency on stuff like this.

 

[FEENIX]

I already did. Evidence posted 2 posts up. He copy and pasted a rokslide post.

Mods on here don't seem to have the same sense of urgency on stuff like this.

This site has always been self-policing and there is only two Admin that I know of for 100K+ LRH members, and @Chris does the moderating, and occasionally @Len Backus joins in with the fun.

 

[Muddybuddy]

This site has always been self-policing and there is only two Admin that I know of for 100K+ LRH members, and @Chris does the moderating, and occasionally @Len Backus joins in with the fun.

Oh I've seen them get involved plenty.

 

[Chris]

Thanks for the report....wait there wasn't one!

Anyways, he's removed, and IP's logged. Thank you.

 

[FEENIX]

Thanks for the report....wait there wasn't one!

Anyways, he's removed, and IP's logged. Thank you.

Thanks Chris for your action and for proving the reporting system works and not being ignored.

Ed

 

[Deputy819]

Nice police work, fellas!