To my understanding, as of January 2006, the Government has removed all monthly contribution limits on the federal 401k or "Thrift Savings Plan." Apparently, my entire biweekly paycheck, up to an annual total of $15,000, can be deposited. There is also a provision allowing for lump sum deposits. If I understand correctly, I can either put in the monthly pretax contributions or do one or a number of lump sum deposits. If I were to choose the lump sum route, which would assumingly come from after tax monies, is there any way of making back that money that was taxed? The way I see it, seeing of how the benefit of the TSP/401k/Traditional IRA is that contributions are pretax, shouldn't there be some way of making the aftertax lump sum payments have the same benefit? Is there a way to account for this on my tax return?You'll have to ask your payroll department. My guess is that you'll get the excess tax withholdings back when you file your tax return. Your W-2 will show a smaller amount in Box 1. I'm less certain how you'll get back any excess SS withholdings. (I don't remember the procedure when a single employer overwithholds FICA).Ira
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra