401K Catch-Up Contributions
12-14-2004, 11:51 PM
#1
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401K Catch-Up Contributions
Anyone know if there are any general rules for 401K catch-up contributions- or is it specific to particular 401k programs?
I'm 27 and need to dump more money ($5k) into something to drop me into the next tax bracket (already maxed out IRA)... any ideas?
I'm 27 and need to dump more money ($5k) into something to drop me into the next tax bracket (already maxed out IRA)... any ideas?
12-15-2004, 12:23 AM
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a little late in the game unless your company's plan alllows for on the fly contribution adjustment. my company's plan lets me adjust my contribution amount on a quarterly basis, so my "catch-up" started 10/1.
12-15-2004, 12:27 AM
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My company's plan allows me to change my contribution % anytime I want, but given only 3 more weeks left this year, this plan is shot.
So I was hoping I could dump a lumpsum of $5k into my 401K (regardless of matching) to help with tax deductions. But sounds like this may be vary depending in the 401K plan, so I guess I'll just call 'em in the morning. Thanks.
So I was hoping I could dump a lumpsum of $5k into my 401K (regardless of matching) to help with tax deductions. But sounds like this may be vary depending in the 401K plan, so I guess I'll just call 'em in the morning. Thanks.
12-15-2004, 10:33 AM
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My company requires you to be a certain age to participate in catchup contributions.
For example, here is a quote from my company.
Participants who are age 50 years and older during the calendar year will be allowed to make additional “catch-up” contributions. Your maximum annual catch-up contribution is limited to:
Year 2003 $2,000
Year 2004 $3,000
Year 2005 $4,000
Year 2006 $5,000
This is obviously on top of your normal maxxed out contribution.
I'm not 50, so I just dump excess money into Roth & Traditional IRAs.
For example, here is a quote from my company.
Participants who are age 50 years and older during the calendar year will be allowed to make additional “catch-up” contributions. Your maximum annual catch-up contribution is limited to:
Year 2003 $2,000
Year 2004 $3,000
Year 2005 $4,000
Year 2006 $5,000
This is obviously on top of your normal maxxed out contribution.
I'm not 50, so I just dump excess money into Roth & Traditional IRAs.
12-15-2004, 10:50 AM
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Find out what your max contribution for the year can be. Then see how much you have already put in and from there you can figure out if you can put in another 5K.
12-15-2004, 03:53 PM
#6
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Originally Posted by mantis23
My company requires you to be a certain age to participate in catchup contributions.
For example, here is a quote from my company.
Participants who are age 50 years and older during the calendar year will be allowed to make additional “catch-up” contributions.
For example, here is a quote from my company.
Participants who are age 50 years and older during the calendar year will be allowed to make additional “catch-up” contributions.
12-15-2004, 04:21 PM
#7
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Originally Posted by GreenMonster
It's not just your company. The "Catch-up" rules they quoted are federal tax laws...
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