Reply to Maxing out 401k contributions at 18%?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]PP, what happens when you max the $18K in PP20 let's say?[/quote]

You lose the matching 5% govt contribution. So for example, let's say your gross pay check is $5k, then govt contributes $250. So if you hit the max $18k in pp 20, you are potentially losing $1.5k pre tax govt contribution.[/quote]

Ummmmmmmm. NO. No. No. No.

Unless you work for the Feds and participate in a TSP, the government is NOT matching your contributions, your employer is. If you do work for the Feds, than that needs to be stated, simply because the government is then your employer and not the "Government" who's matching your contributions.

There is NO such thing as a government match or government contribution, again, unless you have to be employed by the federal government and that's only because they're then your employer.

(Otherwise the logic is correct, if you max out early, you'll lose EMPLOYER MATCH because you're not contributing in this example paycheck 21 - end of year, because you've maxed your contribution limit.)

OP - I work in this industry, call your (husbands) 401k provider. There are truly no stupid questions, we get this is confusing for many people and are perfectly comfortable spending the time to make sure you understand this. [/quote]

Second line in op's post: "Husband is a fed . . ."   This is DC, the government is a common employer. [/quote]

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