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If money were no issue, what would you be doing?
I swear some people are allergic to nuance.
I was laid off during Deloitte‘s mass layoff in July of last year. I have worked as an independent contractor since and projects haven’t been consistent at the client I’m working for. I’m looking to get back into a big firm and was seeing if anyone would be able to refer me or help get my foot in the door. I was a business analyst for 1.5 years at Deloitte and have several years of additional experience which I’d be more than happy to share.
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I saw on here someone saying that payroll automatically stops taking your contribution after the max
Good to know. I’ll have to check with my employer and see if they do the same
Once you max out pre-tax deduction there could be a spillover election that allows you to keep contributing to 401k but the contributions are post tax. Check with your plan administrator.
What
??
Depends on the company/administrator. Some will automatically cut off your contribution at the max so it’s no issue to you.
If that’s not the case, the administrator returns the overage to you, adjusted for any change in market value, and you pay taxes. You may also be charged for a withdrawal penalty.
This happened to me one year. I called Vanguard (where my plan was held) and told them the situation. They sent me a check for the amount I was over by, and I cashed it. That’s about it
My employer stops payroll deductions when the limit is reached. One year, I switched jobs, so new employer didn’t know about prior contributions and I had to monitor. If you go over, call the plan administrator, they have a process. Just did that with Vanguard for similar issue with Roth IRA.
Rising Star
I believe some organizations continue the deduction but tax the contribution. You can contribute how ever much you want, but only 19,500 is pre-tax.
Yep you can contribute up to 99% of your pay to a 401(k), the max applies to pre-tax benefits.
Every plan handles these things differently but you need to contact your benefits administrator immediately to handle before the last paycheck of the year.