Stupid 401K question
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Anonymous
| What happens if you hit the 18K threshold in Nov? Do the automatic deductions just stop until the next year or do you have to call the company and change the percentage? Or does this vary from place to place? I just realized that if my current deductions continue, I am on track to max out before the end of the calendar year and just wondered if I have to do anything to avoid accidentally contributing 20K. There are presumably mechanisms in place with most 401K managers? |
Anonymous
| It'll stop automatically. At least that's how it's been at my last 2 jobs. |
Anonymous
|
You pay taxes on the additional money you contribute.
And depending how your employer handles the match, you may miss out on matching money. |
Anonymous
| Mine doesn't catch it automatically. Check with you hr dept. I adjust mid year to keep at max and also keep match. |
Anonymous
| Does anyone know what happens w the TSP? Automatic or not? |
Anonymous
| Ask *your* plan manager. That is the only relevant answer. |
Anonymous
It happens automatically but you lose your match so you should adjust it so at least 5% of your salary is being withdrawn your final pay period. |
Anonymous
+1. You don't want to lose your match. |