Missed to contribute to the max allowed for 401(K)

Forum|Forum|4 years ago
December 26, 2021
2 replies
0 views

For whatever reasons, my spouse missed to contribute max allowed by IRS to her 401(K) account. She called the firm that manages 401(k) and they let her no "sorry, can't help". Is there any other recourse? I see two issues here- first she missed the retirement contribution and second, also loosing out on the employer match.

Not A Product Question

G

GeorgeDenseff

Her employer sets the terms and there is no recourse.

O

Opus 17

Employee

A 401(k) can only be contributed to via payroll deductions, and there is no provision to make late contributions that count for the prior year (which you can do with certain IRAs). If it is too late to make a payroll contribution before 12/31/21, then you just missed out and there is nothing you can do to take advantage of the benefit for 2021.

VolvoGirl

Employee

Yes you have to ask her employer. Does she have one more paycheck next week before the end of the year? She might be able to put her whole paycheck to the 401K. I did that one year.

M

main0stageAuthor

Employee

In fact I discovered this Nov-end, and immediately boosted her contributions to the max allowed. That still did not bring close to IRS limits since company takes 1 to 2 pay cycles to take into effect. Oh well… thanks all!