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Scott writes:

TMFPixy wrote:
<<It's the pay for the entire year that counts, not that of any specific quarter or when she became eligible to participate.>>

That's for the entire year's contribution - but, can you raise your per-paycheck contribution to make up lost time?

Say you weren't eligible for the plan until July, and your annual cap will be $10k. Can you then contribute $1666/mo, regardless of what your income is that month? Or will your monthly income restrict your monthly contribution?

[Her new employer has indicated that they can't allow her to contribute more to make up for the shortfall with her previous employer. She's somewhat averse to contacting her previous employer's benefits department - they're having a "rats leaving a sinking ship" problem, and nobody gives a damn anymore :-(.]

Technically, she could make a contribution in a lump sum to a 401k plan if the employer's administrative procedures allowed it. She cannot, though, contribute more to her current employer's 401k plan than 25% of what she will earn at that employer for the year. If she works three months in 1998 and earns $12K, her maximum contribution for this year in that plan would be $3K. That could be contributed on the first day she participates in the plan, on the last day of this year, or periodically over the three months. Despite how it's contributed, she cannot exceed 25% of her pay at that employer for the year.

As to a contribution retroactively to her former employer's plan -- Fat chance. She's gone and is no longer a participant. That plan can no longer accept a contribution for her account.

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