I just found out I lost my 401k company match since Sept because I have reached the IRS maximum on 9/4.
The details are: I adjusted my 401k contribution in Q4 (24%) last year because I didn't put enough at the beginning. I did a calculation beginning of this year, it seems it'll be fine to use the large contribution.
Then Company sent us WFH in Mar, soon company had to reduce all employee payroll 20% for a few months, but we'll get back by Q3. So I did see the net pay number on my paystub increased in Sept , I though that's good thing, company kept the words, and I need the money, so I didn't really dig into the details, or ask HR. Well what happened, in Sept, I see my paycheck increased because there was no money into my 401K plan. I rolled to put 24%. Company match 6%. So I lost the 6% since Sept till now. And HR told me that they'll start to match from 2021. Of course I adjusted the 24 down to 15 for 2021. I realized this is my fault, because I put too much into my 401k from Jan. I didn't realize I'll be over the IRS limit at all, which never happened before, and the consequences. Moreover company issued bonus (10%) in Apr, which brought a few K into my 401k plan too. I didn't consider that.
It's a lesson I learned, my question here, is that normal practice for corporate HR, when employee reach IRS limit in the mid of year, HR administrator just stop the payment, and employee lose their company match without any notice, any possible way can get the company match? I was thinking the whole situation last nigh, even I found the paycheck change right away in Sept, at that point, I was basically not able to do anything. Right? My company only offer 401K pre-tax match. I do my own Roth IRA through Vanguard.
It's a very expensive lesson, not only lost the company match, I'm also pay higher tax.
Thank you all for any suggestion, any input.............
