No. of Recommendations: 0
If I'm not mistaken, the government set a maximum contribution allowed into a 401K at 25%. If that is correct, why do many employers (like mine) only allow a 15% contribution. I've asked that question to our plan administrator and they say it is a safety factor so contributors don't go over 25% and get penalized. (besides, they say, it is a hassle to refund money to the contributors if over 25% is contributed. sounds like a lousy reason to me!) The difference between 15% and 25% should allow me to retire a little earlier, but because of a safety factor they won't let me do it. Is there anything I can do to increase the amount? Is there a form letter similar to http://www.fool.com/money/401k/401kLetter.htm that I can send?
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement