Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
- I get paid on 1st and 15th of the month.
- Jan 1st 2017 is a Saturday this upcoming year
- Therefor I will get paid on Dec 31st 2016

What year will my 401k contribution count towards? It usually takes a few days for $ to hit 401k account, so I would guess Jan 4th.

I plan on coming within pennies of the Maximum allowed, but if the last paycheck counts towards 2016 I will be over and will need to adjust my contribution %

Thanks!

Chris
Print the post Back To Top
No. of Recommendations: 0
I was off by a day, Jan 1st 2017 is a Sunday, So I'll get paid on Friday Dec 30th...
Print the post Back To Top
No. of Recommendations: 0
The date you are paid is the date of the "deferral" for purposes of calculating the limits, tests, etc. You can adjust you contribution percentage or not - as MOST payroll systems will not let you defer more than the maximum allowed (so you last pay will have a deferral only up to the limit and no more). If for some reason more money gets into the plan, then it will be refunded to you early in the following year.
Print the post Back To Top
No. of Recommendations: 0
thanks! I had two different employers this year, the 2nd doesn't know the amount I contributed with previous employer, so I want to make sure and handle it myself.


The date you are paid is the date of the "deferral" for purposes of calculating the limits, tests, etc. You can adjust you contribution percentage or not - as MOST payroll systems will not let you defer more than the maximum allowed (so you last pay will have a deferral only up to the limit and no more). If for some reason more money gets into the plan, then it will be refunded to you early in the following year.
Print the post Back To Top
No. of Recommendations: 0
Understood. Sometimes (if you are inclined and your current employer is capable) you can let your current employer know the amount of the previous contribution and they will track it, so you can hit it to the "penny."
Print the post Back To Top