We go to an online portal to update or look at our contributions to our 401k.
We have a roth, after-tax, and before-tax option.
We get to set a certain percentage that goes from our paycheck to the 401k.
This percentage cannot be represented as a decimal, must be a whole number. I have it set at 32%, so that is 32% of my salary of $62k.
This whole time, I assumed that the contribution would stop if I was about to go over and just automatically bump me to the max, so I had it around 32% for some odd reason.
Then I found out that is not the case, anything above $18k is put in as an after-tax contribution.
So I think I must have done this last year, so I essentially got double taxed for around $2k and lost money.
What can I do to make sure I'm putting right around $18k in without going over?
I've been "overcontributing" this past year, with ~$2100 left to contribute for the year.
If I change my contribution percentage in order to contribute exactly $2100, it will take 1-2 paychecks to be effective. So I need to predict when it will take effect, and change the percentage a total of 2 times, then set it back to 29% once the 2018 contributions start.
It's incredibly frustrating that I have to do all this extra work just to avoid losing a lot of money.
All I want is a way to max my before-tax contributions every year to the limit $18k. That's it lol.
Thanks.
Submitted November 09, 2017 at 01:44PM by chet_jones123 http://ift.tt/2AybbYb
