I was talking to a financial advisor buddy of mine (not my financial advisor as I don't have one) and he mentioned that when you hit $345k in salary/bonus comp you can no longer contribute to a 401k. That was news to me. I was paid a bonus in February + salary YTD which has me over that threshold and sure enough, was paid today and there was no 401k contribution taken out or company match.
This was the first I'd ever heard of this as I thought I have made over that amount before and never noticed 401k not being pulled out.
I thought you were entitled to the full $23,000 401k contribution limit regardless, and I thought the company would match all the way up to that contribution amount. My company matches 5%.
Can anyone shed some light on this or help explain it to me? The biggest bummer is I purposely reduced the 401k contribution amount in my bonus last month to just 2% from my usual 6% in an effort to stretch the contributions throughout the year.
Thanks
This was the first I'd ever heard of this as I thought I have made over that amount before and never noticed 401k not being pulled out.
I thought you were entitled to the full $23,000 401k contribution limit regardless, and I thought the company would match all the way up to that contribution amount. My company matches 5%.
Can anyone shed some light on this or help explain it to me? The biggest bummer is I purposely reduced the 401k contribution amount in my bonus last month to just 2% from my usual 6% in an effort to stretch the contributions throughout the year.
Thanks
Statistics: Posted by FootballFan5548 — Fri Mar 15, 2024 8:50 am — Replies 3 — Views 80
