I have been holding off contributing to the 401k due to the expectation of being laid off this year. If by some miracle, I am still there in October, can I catch up on my 401k contributions last two months of the year(50-100%) to get the maximum 6% match for the year. Thanks
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I do not know your salary so cannot give an accurate answer.
Be careful here. There was a change a year or two back that is vague in wording. You need to ask on it. The wording on match could be interpreted to signify match will only happen up to 6% for every individual paycheck. So, if one gives 0% of 100 k salary in Jan-jun and gives 12% in July-dec then 6 k from employee but match only happens in July-dec part which is 3% so employees end up w 9% instead of 12%. (50k * 0 =0 so match is 0 for first six months then 50k*.12=6k but max match allowed is on 3k for last six months of year). Was on a call a year or two back and this was inferred.
There is some bad math and info in here. OP would have to be employed through EOD 12/15 to get the match on 12/31. Per the post they ask if they can make up 401k contribs in Nov and Dec to the 6% match.
Not possible OP per your parameters. You’d have to have the 6% contributed by/on 12/15 which gives you only 3 pay periods. So the Dec 6 paycheck would be your last opportunity. You can still add more on your last paycheck of the year but they don’t extrapolate out to account for that future payment.
You need to start contrib 50% in the first paycheck of Oct to make sure you clear the # in time, but at a minimum starting on the second would let you make it. It would take 4 pay periods to hit the 6% match. The first responder listed 24% but that won’t be nearly enough over 5 pay periods to max it.
As others have said, 50% is the max. Never quite figured out why the company cares but it's been a rule for decades.
Max per paycheck is 50%
I thought you had to be here on 12/15 to get the match.
As long as you are employed on 12/31 they will pay the full years company match. Unless they waive that for employees displaced during the year.
I thought there was an arbitrary max so you couldn’t do 100% even if you wanted to. Might want to look right now and see if there’s a cap?
There are certain payroll deductions that take precedence over 401 so those aside your approach works.
Yes - if you contributed 24% all q4, and 0% the other three quarters, this would add up to 6%. You’d then get the full match.