Maxed my 401k for the year

[QuarterMillionMan]

My plan allows changes any time of the year but it takes 2 pay cycles for changes to take effect.

[Like2Plan]

You have fidelity. You should be able to change it throughout the year. That is surprising.

I adjust mine 4-5 times a year when I am planning my schedule to max out. I can change it so it takes effect by the next paycheck. Every two weeks

I was thinking the same thing. DH has had Fidelity for 2 of his 401ks and he was allowed to change every pay period, if he wanted to. It's been a while, but IIRC the changes to the percentages were made on the Fidelity web site.

[QuarterMillionMan]

Well I actually need to get to $26,000 with the catch up. That means I should contribute 10.7% to max out on the final paycheck of the year. I'd hit the maximum match when I got to $19,500 though. Had I done that this year, it would have been on the 9/24 check instead of the 8/13 check so almost 3 additional match payments.

I guess I need to lower my contribution from 13 to 11% for 2021.

DS this is correct. Towards the end of the year if needed you can increase your contributions to max out and still get the match in November/December.

[corn18]

You have fidelity. You should be able to change it throughout the year. That is surprising.

I adjust mine 4-5 times a year when I am planning my schedule to max out. I can change it so it takes effect by the next paycheck. Every two weeks

Before our merger, I had Fidelity for my 401k and I could change the contribution amount any time I wanted. After the merger, I have Fidelity and I have to pick in Dec for the following year and can't change it. One thing I have learned about 401k's is that they are all different. I missed out on my after tax 401k contributions this year that I roll over to a Roth. Had to put it in taxable instead. I usually put in $19k into after tax 401k and then roll that to a Roth each year, but for some reason I did not set my after tax withdrawal up correctly.

[Like2Plan]

Before our merger, I had Fidelity for my 401k and I could change the contribution amount any time I wanted. After the merger, I have Fidelity and I have to pick in Dec for the following year and can't change it. One thing I have learned about 401k's is that they are all different. I missed out on my after tax 401k contributions this year that I roll over to a Roth. Had to put it in taxable instead. I usually put in $19k into after tax 401k and then roll that to a Roth each year, but for some reason I did not set my after tax withdrawal up correctly.

Wow-- That is terrible! What happens if you underestimated your cash flow requirements back in Dec and/or suddenly need more money in the middle of the year? (I know--you should have an EF) But, are you stuck with your election?

[disneysteve]

Now I'm really confused.

I went to the website to change my contribution from 13% to 11%. There is a graph showing YTD contributions by employee and employer. Mine says $26,000, which is correct. The Employer section says the match is $7,358.75 but my latest paycheck only says $4,774.12. That larger amount is 3% of my gross YTD, meaning the match didn't stop at $19,500 even though the paychecks make it appear that it did.

Is there any reason the amount on the paychecks would be wrong?

[QuarterMillionMan]

The beauty of these plans even a blue collar gubmit worker with max contributions can attain.

[disneysteve]

Turns out I was remembering incorrectly. I checked my records. There IS a true up at the end of the year. I have the letter informing me about last year's true up contribution.

That being the case, is there any reason or benefit to me stretching out my contributions to not max out until December?

[Like2Plan]

Turns out I was remembering incorrectly. I checked my records. There IS a true up at the end of the year. I have the letter informing me about last year's true up contribution.

That being the case, is there any reason or benefit to me stretching out my contributions to not max out until December?

for the true up!
No--there is no benefit to stretching it out. Front load it! Some years DCA will win, but front loading is usually the winner--as stated above--time in the market.

[QuarterMillionMan]

Turns out I was remembering incorrectly. I checked my records. There IS a true up at the end of the year. I have the letter informing me about last year's true up contribution.

That being the case, is there any reason or benefit to me stretching out my contributions to not max out until December?

DS stretch it out until December in order to get the matching contributions.

Edit to add: I'm not familiar with true up so my suggestion could be off.

[Like2Plan]

DS stretch it out until December in order to get the matching contributions.

Edit to add: I'm not familiar with true up so my suggestion could be off.

https://budgeting.thenest.com/definition-trueup-401k-26442.html

[QuarterMillionMan]

https://budgeting.thenest.com/defini...01k-26442.html

Thanks L2P, yes I see now front load it DS. In January I would contribute 100% and be done with it.

[corn18]

Turns out I was remembering incorrectly. I checked my records. There IS a true up at the end of the year. I have the letter informing me about last year's true up contribution.

That being the case, is there any reason or benefit to me stretching out my contributions to not max out until December?

Yup, if I miscalculated I’m hosed. Hi my base salary is larger than the max salary so I just set it at 7% and forget it.

[disneysteve]

Yup, if I miscalculated I’m hosed. Hi my base salary is larger than the max salary so I just set it at 7% and forget it.

I'm not sure what you're saying here.

[QuarterMillionMan]

I'm not sure what you're saying here.

If corn contributes too much too early he will miss out on the match in Nov/Dec. If corn contributes too little he won't max out before the year ends. Remember corn cannot change his contributions. He has to set it before the year starts and it will be hit or miss when the year ends.