Reply to "maxing out" TSP, 401, etc.

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Reply to ""maxing out" TSP, 401, etc."

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[quote=Anonymous][quote=Anonymous]What I meant was I contributed the most my employer let me which was 10%.

I know I could have by federal law contributed more but I would still say I maxed out at work.

It wasn't until I was in my mid-30's that I actually hit the federal max. I now call that extra money my Christmas bonus, because I hit the max in November and my paycheck goes up.[/quote]

Make sure you're not leaving money on the table by doing this.  My husband did it one year without realizing the consequences: his employer matched the first 4% of his contribution each pay period, but he maxed out at the end of October and couldn't contribute anything in Nov or Dec.  He missed out on the employer's 4% match during those two months.  It was a shock when he realized that the match maximum is calculated per pay period, not for the year overall - he didn't get any "credit" for the contributions he'd made over 4% in prior months.  We've both adjusted our contributions to make sure we both hit our limits during the last paycheck.

To answer the OP's question, I'd assume that "maxing out" means the federal limit, e.g. $18K for this year for under-50-year-olds. If the workplace has a lower limit like 10%, I guess that would apply also.[/quote]

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