UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: Contributing to my 401K during retirement Date: 3/13/2013 9:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
This depends on how the plan is written.
Most plans with which I've worked required that the annual contribution be paid in 'substantially equal' monthly deferrals, although I have heard of 401(k) plans that allow accelerated contributions for those who wish to make most of their annual contributions early rather than later in the year.

Are you wishing to accelerate contributions to maximize employer matching? If so, this probably won't work, as employer matching is usually made on a monthly, quarterly or even annual basis...and if this is not a safe harbor plan, the plan could use the 'last day' rule, which means you would not get the employer's match unless you are employed on the last day of the year....although the plan may make an exception for those who are (per the plan's definition), retiring.

Check with your plan administrator or read through the plan's Summary Plan Description.

BruceM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Macro Economics

Intel's Broadwell Potential
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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