I’m leaving my current job and immediately starting a new one. I’m essentially maxing out my current 401k (just shy of 19k/ yr) and will definitely at my next one. When I leave, I will get a big PTO payout and I assume extra will go into my current 401k. I’m going to roll that over and then max out my new employer (the full 19.5k in 10.5 months). I assume when I do my 2021 taxes I will have an excess contribution? What will happen then? Will I have to pull money back out? Or will it matter?

like
Posting as :
works at
You are currently posting as works at

Don’t do this. When you start your new employer plan they will ask about 2021 contributions to your old plan. If you make an excess contribution it’s a moderate hassle to have the funds withdrawn, and also causes extra tax paperwork. Much better to just manage your total 2021 contributions to the 19.5k limit

like

Oh, and thank you! 🙂

Find out when your match starts at your new co. You may want to pull back to max your match over the year.

like

Good point. I’m used to annual matches. I’ll read the paperwork when I start and adjust accordingly.

That’s what I was wondering. I haven’t switched jobs in a while so I wasn’t aware of the question about prior contributions in the same year. I’ll probably turn off contributions for the rest of the time I’m at my current employer and make it up at the new one until I hit the max.

Related Posts

It’s worth a shot 😊
Anyone able to give me a referral for
Facebook (Meta) or Google?

I am a paralegal with 8 years of experience in the legal industry (+ Fortune 500). I was just diagnosed with a serious health condition and I’m looking for new remote position, that is challenging and offering high pay and benefits. Facebook (Meta) & Google currently have openings for positions that align with my skills. I kind ask that you simply share some tips, if you are unable to offer a referral. THANKS!

Post Photo
like

I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept?
1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate
2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty

like

Advice time. So I’m making 100k roughly and I still live with my parents. Moved back due to COVID as did a lot of people I think? Anyways I want to save $ to buy a house. Should I still be living at home? I was planning on leaving when COVID finally becomes a thing in the past so assuming the summer of 2022 so roughly 8 months from now. I know I am extremely blessed and thankful to god that my parents are kind and allow me this but just want advice please.

like
like

Has anyone gotten any kind of comp package involving crypto? I know some companies now do some forms of that or allow employees to take certain amounts in it.

likefunny

Since Covid-19 who else has lost big accounts?

like

Thoughts on getting medical coverage via employer when I have VA healthcare? I go to doctor only for annual check up, no existing conditions. I leaning towards not getting it with my employer but what are the cons of doing that?

like
like

Hello, I have received an offer from Southwest Airlines as a Associate Technology Analyst with their direct college hire program. Will be graduating in May with a degree in MIS and also have internships experience as a Business Systems analyst intern. The salary compensation started off at 66,500 but was looking for the 75k range and they got back to me saying the best they can do is 68,500. They also have a 401k company match up to 9.3%. Do you think this is a solid offer for this job market?

like

So, how many days left before you start the holiday seasons? What are your biggest priorities for the new year?

Hello from San Diego,

Recently separated from the Navy after 10+ years as a hospital corpsman. I have my degree in healthcare administration. I have years of leadership experience, leading teams, managing clinics etc. Having a hard time finding a job. Is anyone hiring or know of someone?

Thank you

like

I hit my FIRE number today at 50yo!!!! Had to tell somebody.

likeuplifting

Health insurance for parents is worst in JP Morgan. Coverage is low and premium is high on top of that 70% copayment. How are you guys handling your parents health insurance

like

Hi all,
I have been a practicing DPT (doctor of physical therapy) for 9 years and am a certified orthopedic specialist. I have worked in multiple environments including hospital based outpatient sports ortho and acute care. I am about to finish up my MBA with a focus on healthcare administration, and am worried that my current place of work may not have a place for me to grow into. I'm hoping that some of you may have suggestions of roles or positions to pursue? Thank you!

like

What’s your exit strategy? Do you have a number/age in mind? In days like today, I wish I could retire and not look back. But two kids, living in NY, think at least 6M (combined with hubby) in the bank before contemplating… what about you?

like

A lot of folks, this bowl included, are getting a reality check at the moment, which i think is good for learning experiences. Can’t call yourself an “investor” but the second you see a position fall +20-30% start to question or panic sell. However, if this is you, and your equity position was initiated off a whim or a blind recommendation, I struggle to feel any sympathy lol especially if you were someone buying stocks (MGNI for example) when they were approaching ATH

like

Roth 401k or regular 401k?

like
like

Got married, bought a house, doing a major remodeling, planning to have a kid… safe to say that I am no longer on track with my FIRE journey 🥲

likefunny

More Posts

What’s going on at Sapient Razorfish NYC?

likefunny

My colleague’s dating profile says he’s 6ft but he’s 5’9. That’s all

funnylikeuplifting

Salaries for hospital and/or pharmacy billing in Indianapolis area?

like

Scored this one yesterday, lucked out and picked up the last one they had in the store.

Post Photo
like

I feel the same way sometimes

Post Photo
like

Thoughts on nepotism babies becoming successful A-listers? Is it because of their talent or mostly due to their connections? Can someone share some talented examples?

like

Is anyone here working with a venture / private equity fund? I’m a seasoned professional who has hands on experience for 10+ years. I’m looking for job referrals within fund accounting / ops. Any references?

like

How do you start doing tax returns on the side? I am a CPA, but work in industry. I’d like to get a handful of clients and start doing returns for a side gig - do I need to form /license a tax preparation business? I need to do some research for my state specifically but just generally trying to get an idea of what is involved. Also what’s the best software to use if I am just doing a handful of individuals and small businesses?

Hi Microsoft Fishes are these numbers accurate ??

L58-L59 : Level 1 : 14-16 Lakh + 10-15k worth Stocks
L59-L60 : Level 2 : 16-18 Lakh + 10-15k worth Stocks
L61-L62 : Senior Level 1 : 18-20 Lakh + 10-20k worth Stocks 
L62-L63 : Senior Level 2 : 20-25 Lakh + 10-20k worth Stocks

like

What's your favorite date night spot in Vancouver? Bonus points for views/ambiance.

like

Anyone use Brandwatch? Do you like it? Insight into prices?

Is this true currently demand for data engineers is much more as compare to data scientists?

like

Looking to move to NYC! Anyone have a room?

I’m looking for a goal setting journal instead of a planner this year and I’d like to support a minority owned business. Do you have any suggestions of where I should look??

like

I had to make a presentation in my first grader’s class today on dusshera.. she is the only desi in her class. I struggled to find a non scary pic of ram and Raavan.. and then I found this! thank God

Post Photo
likefunny

i want pizza.

...and a new job.

likeuplifting

Do you guys ever compare your progression to those in your graduating class? Or to peers in your age group? How do I shake the need to constantly compare myself to others’ career progression? I feel like I am a year behind and I can’t shake the feeling of self blame and insecurity.

like

Can you be married to a partner at another Big 4 if you’re a partner at a big 4 (I.e. If I’m a partner at pwc can I be married to a Deloitte partner)?

like

Cheap cleaning service for young professionals in a 3 bedroom apartment (22-23 years old)?

like

Can anyone suggest skills or credible certification to do for joining as product manager in IT firms

like

Additional Posts in Personal Investment Chatter

what’s the most you’ve spent on brunch 🤣

funnylike

Left KPMG last year to move to smaller consulting firm. I still have my 401k over there and haven’t rolled it over anywhere. What are my best options? Currently maxing out 401k

helpful

What ETFs, index funds do you all invest in and what u recommend in this recession looking like economy. I'm a beginner investor. Just opened my fidelity brokerage account.

like

Moving to Dallas soon. Does it make sense to buy a condo or house even if I dont think I'll stay there for more than 3 years? I have family there that can help me if I decide to leave and rent this property. Any thoughts? Just dont want to keep paying someone else mortgage. Also want to take advantage of low interest rates.

like

How much do you take home after tax and maxing pre tax 401k while making 144k? Not sure if I'm doing something wrong with my withholding. I'm married filing jointly withholding at a single rate, 1 federal and 1 state. DC location. I'm only taking home $6k a month.

like

When you all place limit orders, how do you determine your limit? I was told to never place a market order so I always select limit, but then randomly choose a number somewhat below the current market price with really no rhyme or reason.

like

Hey all! I would appreciate some feedback on my investing strategy: I want to buy QQQ3X when QQQ goes below 118$. I believe a major market reversal (a crisis) should take place in late 19 or (cont)

Came across a duplex for 475k in SoCal. Up and coming area that’s getting gentrified fairy fast. Looking to rent out the front for 2k and and splitting the back with a housemate for 1k. Cont below.

like

How do you calculate what tax bracket you will be at when you retire? Keep reading choose the option based of what tax bracket you will be at retirement but I literally have no clue

like

Can anyone recommend good investment options in Bank of America HSA account? I feel their funds are very limited compared to what I have seen from 401k and IRA. Anyone recommends your HSA account?

Anyone else buying Series I bonds right now? What are the pros/cons?

like

Does anyone have experience adding authorized user to a fidelity account?

like

Noob question. I was consistently investing from the last 6 months in etfs upto 130k. Up until day before my account showed gains of 10k and today all of it is wiped out. What is I’m the rationale..

like

What blogs/books/resources should I seek out if I want to make the transition from passive trading (index funds/buy and hold blue chips) to more active trading (options, speculation, spending a few hours a week researching, etc)? I’m looking to turn my investing into more of a side hustle

like

Recommendations for how to allocate 401k with Fidelity. Just switched jobs and have to move from Merrill Lynch to Fidelity

like

Start tomorrow but I don’t get a match for 401k until 2nd year. Living at home and wanted to pay off my loans. Is it ok if I just do loans, max out IRA, and have an emergency savings? Projected CONTD

People investing in rental real estate what’s your ROI this year? My profit divided by current value is barely above 3% (and that’s with no renovations and 100% occupancy). Should probably sell it and invest elsewhere...

like

Anyone in a Big 4 (maybe better at EY) ever done an alternative or a fund private investment? If so what are the rules/process to take to clear it if anything? Or just report it in independence?

like

What is a good introduction book on investing?

New hire out of undergrad thinking about investing/saving—seeking advice. Details in comments: 15k sitting around in checking/savings account with interest close to nothing. Been reading posts here an

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal