Twitter
Email
RSSJust throttled down my 401k contributions
I just logged into IBM's 401k web site and throttled down my 401k contribution from 10% to 6%. Unfortunately I may be too late.
When I logged in I realized I was already closing into my 2005 contribution limit. The limit for 2005 is $14,000 for contributions and I have already contributed $13,236.42.
IBM matches 50% of contribution up to 6% of your salary and I don't want to miss any of this free money.
After crunching the numbers it looks like I will miss out on $63.55 in matching contributions because at a 6% contribution rate I will hit the limit with $126.11 to spare. Nothing major, but certainly a disappointment.
by 2million on
11/01/05
|
Tweet
| Add to del.icio.us
| Comments (9)
Related in 401(k):
QE: The Good and the Not So Good (Nov 12, 2013) Here is a snapshot I took of my 401k YTD returns and my personal reflections: The Good: Holy Cow! That is amazing. Not only have we had a huge upswing in US stock indexes, my entire 401k portfolio is up...
2012 401k Contribution Limit (Jan 09, 2012) The 401k employee contribution limit has finally had its first increase in 4 years in 2012. I historically max out my 401(k) contributions so I'll need to tweak my contribution levels to ensure I hit the max by the end...
T Rowe Price Annual Service Fee for Low Balances To Increase (Jul 12, 2011) We got a notice that there are some upcoming account changes to my wife's IRA accounts at T Rowe Price. The main change that affects us is that they are now imposing a $20 annual service fee for accounts with...
Comments (9)
DATE: 1:20 PM
Will IBM be offering a Roth 401(K) plan from 2006? Mine isn't, and I'm bummed at not being able to take advantage of it!
Posted by Continental Drift | September 10, 2006 3:05 PM
DATE: 2:17 PM
Hmmm, you know I haven't heard anything about that yet. There was no mention of a Roth 401(k) in our benefits enrollment package. I will have to look into it
Posted by 2million | September 10, 2006 3:05 PM
DATE: 5:57 PM
What happens if you go over the $14,000 limit? Does your employer stop deducting the funds automatically or do you need to manually make the change?
Posted by Anonymous | September 10, 2006 3:05 PM
DATE: 10:52 AM
With my 401k plan once you hit the limit your contribution are automatically stopped. I am not sure if all plans act the same way.
Posted by 2million | September 10, 2006 3:05 PM
DATE: 1:18 AM
Are you making 120+ grand?Because I had to hit 21% to get 14k limit! Impressive that you started at 65k and are doing so well.
Posted by Anonymous | September 10, 2006 3:05 PM
DATE: 8:54 AM
I wish I was making 120k! No I had my contributions up near 30% at the beginning of the year (because there was a freeze on IBM's ESPP plan for several months) and then had to throttle them down as the year progressed so as to not overshoot.
Posted by 2million | September 10, 2006 3:05 PM
DATE: 8:00 PM
Hi - I just found your website.. and I, like you, maxed out my 401(k) early this year, namely in July-ish timeframe. I work for a similar large professional services company, and I woudl never have allowed myself to do this if I didn't know for sure that my comapny does a true-up at the end of the year, to make sure I don't miss out. (Same thing happened to me last year) So... good news for you -- you might be okay! As a matter of fact, i figured the amount of my true-up and posted a future dated entry in Quicken for Dec 28th, so I will remember to chek to make sure they do it. My "significant other" also works for IBM, and i think that you guys also have Hewitt.. I recommened Calling Hewitt and asking about the true-up. If not, complain.. that's your money!
Posted by Anonymous | September 10, 2006 3:05 PM
I am confused.
If "once you hit the limit your contribution are automatically stopped." why are you throttling back?
Myself, I contribute just a wee bit more than necessary, so the full $15,000 will go in this year. My last paycheck will top up the 401k and have a couple hundred more than usual in my take-home pay. That "extra" money will pay off the credit card for my Christmas gifts.
Posted by Amy K. | November 29, 2006 12:42 PM
I apologize for the confusion. I am not sure how common this is, but my 401k plan currently has a little gotcha in regards to its match; therefore you have to time you contributions correctly.
See this discussion on the 401k contribution match issue I am talking about.
Posted by 2 million | November 29, 2006 1:17 PM