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Does 401K pretax contribution stop automatically at limit?


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Guest Rita555
Posted

I have two jobs, and one of them has matching funds. This year I elected to put 80% of pay into the matching funds. Since I am 56, I have a 2011 cap of 22,000 dollars ( I think that is right). Will contributions stop automatically when it hits that number, or do I have to watch for them to continue with the extra 6K?

Posted
I have two jobs, and one of them has matching funds. This year I elected to put 80% of pay into the matching funds. Since I am 56, I have a 2011 cap of 22,000 dollars ( I think that is right). Will contributions stop automatically when it hits that number, or do I have to watch for them to continue with the extra 6K?

This is actually a payroll question, so you need to check with your HR department. And each payroll operates independently of the other, so it will be up to you to monitor and make sure you don't exceed the limit or request the excess back from one of the plans.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Guest Rita555
Posted
I have two jobs, and one of them has matching funds. This year I elected to put 80% of pay into the matching funds. Since I am 56, I have a 2011 cap of 22,000 dollars ( I think that is right). Will contributions stop automatically when it hits that number, or do I have to watch for them to continue with the extra 6K?

This is actually a payroll question, so you need to check with your HR department. And each payroll operates independently of the other, so it will be up to you to monitor and make sure you don't exceed the limit or request the excess back from one of the plans.

Okay, Thanks, I'll check in with them. After reading this board, it sounds like it is much more sophisticated and probably directed more for administrators of plans. Thanks for taking time to answer my question.

Posted

You're kidding! I thought you were Austin Powers! I'm truly shocked & disappointed, whoever-you-are. Never again will I let you score on a breakaway . . .

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