Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

What do you mean when you say you've bumped up your percentage and may not make it? Do you not have enough margin in your income to max out or does the percentage still not get you there?

infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

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Divide the limit less any contributions you've made by the number of months you have left and make sure you're contributing that amount? Adjust your percentage next year to spread your contributions across all 12 months. I don't see how this is difficult.

infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

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We had the opposite situation. Wife was getting laid off. We bumped her contributions to 50% of her paycheck. Also many big company payrolls will automatically stop deducting once you reach your contribution limit.

Why not just change your contribution from a percentage to a dollar amount in order to max it out at the last paycheck?

BenTheGoodAg said:

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What do you mean when you say you've bumped up your percentage and may not make it? Do you not have enough margin in your income to max out or does the percentage still not get you there?

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Yes, I will be in the plan only for about 4.5 months and bumping it up to the level I can will not let me hit the limit. In other words, it is already end of August and I am about 5% of the limit. Future paychecks will bring it close but I think I can get to maybe 75% of the limit.

FTAC2011 said:

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Why not just change your contribution from a percentage to a dollar amount in order to max it out at the last paycheck?

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I have my contrib at 60% of my paycheck right now. The issue is that I joined this place and the 401k just kicked in (1 paycheck is in). That is all of my contribution for 2024.

chris1515 said:

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If you don't max it out one year, or occassionally, it's not the end of the world.

Sure, you'd like to….but I wouldn't lose any sleep if you don't make it.

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You are right, but i am just trying to see what my options are and if it is possible in this situation.

Talk to your companies Payroll administrator and let them know what you're trying to do.

There will probably be things they can do manually that you can't do through the portal.

I Am A Critic said:

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infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

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Divide the limit less any contributions you've made by the number of months you have left and make sure you're contributing that amount? Adjust your percentage next year to spread your contributions across all 12 months. I don't see how this is difficult.

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The issue is I don't want to go above 60-70% as I need some portion to pay for medical and taxes etc. At a previous company I had it as 100% for short time and HR called to say I could not do that as I had to pay for these things.
The issue is at this level, I am not likely to hit the 23k limit. The reason for this is I just started a new job/401k and with no contribution all year, I am starting right now.

Kenneth_2003 said:

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Talk to your companies Payroll administrator and let them know what you're trying to do.

There will probably be things they can do manually that you can't do through the portal.

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I am confused about how they could help even if they wanted to since the issue is about me not able to get to the limit in the time remaining in the year (about 4 months).

So assuming this is the case, are there other avenues?
Example:
Limit = 23k
Let's say I am able to contribute 20k.

Is there anyway I could send the 3k to my IRA in Jan 2025 and claim some kind of deduction in my taxes in April so my taxes are lower and the 3k becomes pretax. It will be in my IRA rather than 401k.

deddog said:

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infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

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We had the opposite situation. Wife was getting laid off. We bumped her contributions to 50% of her paycheck. Also many big company payrolls will automatically stop deducting once you reach your contribution limit.

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I am surprised they gave her notice that they would lay her off in the future. That almost never happens. Possibly they gave her benefits for a few months more and you mean that.

What website are you using? I was able to do this easily by letting HR know. Let them know what you want to do and how to do it.

you also know there is "catch up contributions" if you are over the age of 50

Individuals who are age 50 or over at the end of the calendar year can make annual catch-up contributions. Annual catch-up contributions up to $7,500 in 2023 and 2024

LMCane said:

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you also know there is "catch up contributions" if you are over the age of 50

Individuals who are age 50 or over at the end of the calendar year can make annual catch-up contributions. Annual catch-up contributions up to $7,500 in 2023 and 2024

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Catch up is done through the provider itself and done automatically. My question was different. I am not able to reach the limit in 2024 through my paycheck so is there a way I can make up for the difference in 2024, say in Jan.

infinity ag said:

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deddog said:

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infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

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We had the opposite situation. Wife was getting laid off. We bumped her contributions to 50% of her paycheck. Also many big company payrolls will automatically stop deducting once you reach your contribution limit.

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I am surprised they gave her notice that they would lay her off in the future. That almost never happens. Possibly they gave her benefits for a few months more and you mean that.

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Were you class of 98?
If so, we might know each other.

Company laid of the entire IT department, and moved all jobs to India. But they couldn't let the teams go overnight, so they gave them a few months, depending on how pivotal you are. She got 6 months notice

So that gave us time to adjust.

Then they rehired her back - should have taken the severance and run, but she didn't want to interview for another job.

infinity ag said:

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LMCane said:

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you also know there is "catch up contributions" if you are over the age of 50

Individuals who are age 50 or over at the end of the calendar year can make annual catch-up contributions. Annual catch-up contributions up to $7,500 in 2023 and 2024

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Catch up is done through the provider itself and done automatically. My question was different. I am not able to reach the limit in 2024 through my paycheck so is there a way I can make up for the difference in 2024, say in Jan.

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401K i don't think so.

i assume you make too much for a Roth? Because otherwise you could maximize what you can for 401K in 2024, and then, if you are eligible for Roth, could you not contribute in 2025 prior to April (for 2024?)?

infinity ag said:

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I Am A Critic said:

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infinity ag said:

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Here's the situation. I was in the job market looking for the first half of the year. So no 401k contribution. Then I got a job and began to contribute from Aug. I have 4-5 months to reach $23k limit and I have bumped up my contribution percentage. I might still not make it, what are my options?

Is there a way to send money to my 401k/IRA and get a tax refund? I have never been in this situation so was wondering if I could do something about it.

---

Divide the limit less any contributions you've made by the number of months you have left and make sure you're contributing that amount? Adjust your percentage next year to spread your contributions across all 12 months. I don't see how this is difficult.

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The issue is I don't want to go above 60-70% as I need some portion to pay for medical and taxes etc. At a previous company I had it as 100% for short time and HR called to say I could not do that as I had to pay for these things.
The issue is at this level, I am not likely to hit the 23k limit. The reason for this is I just started a new job/401k and with no contribution all year, I am starting right now.

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Did you get any money on your first paycheck? Seems like you could raise your percentage by that amount.

Do your W4 selections set you up to get a refund in 2025? Could be an opportunity to squeeze a little more into it now if it can be adjusted? I'm not a tax expert, but you maybe could even underpay this year and owe that money in April. There are rules on how much you can underpay before you get penalized. I wouldn't personally wouldn't go that far, but it's an option to look into.