Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Most of my clients have been increasing the limit to 50% of pay, specifically in order to hit the 402(g) limit ($12,000 this year) and allow those over 50 to participate in the catch up contributions ($2000 this year). Theroetically, it can now go to 100%, but because of other deductions, it generally isn't wise to do so. You should make sure how your employer calculates the match - if it is on a per-payroll basis, increasing your deferrals above the match amount may cost you matchinbg dollars. Some employers (a growing number, in my un-scientific impression) are matching on the basis of annualized comp and will make you whole, or make a "true-up" match at the end of the year, so this is not a worry (except as to timing of investment).
Print the post  

Announcements

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.
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.