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How do I determine which calendar year a 401(k) contribution will fall in? Is it based on whether the paycheck falls in 2022 or 2023, or is it based on the pay period? Is there anything equivalent to a "late previous year" contribution prior to April 15, like there is for an IRA?
I just switched jobs and just about maxed out my 401k this year at my old job, so I am trying to figure out when I can turn on 401(k) contributions at the new job without accidentally going over the limit for 2022.
Do not know the correct answer but to get you started.
You are cash basis for taxes and your employer will report on your IRS year end tax statement on the cash basis.
Thus I would say the last day for a 401k 2022 contribution is the date of the last paycheck you get in 2022 and not the pay period.
See if you can look at last years tax statement and see if the 401k total deductions for the year on the pay stub agrees with what was reported to the IRS at year end.
How do I determine which calendar year a 401(k) contribution will fall in? Is it based on whether the paycheck falls in 2022 or 2023, or is it based on the pay period? Is there anything equivalent to a "late previous year" contribution prior to April 15, like there is for an IRA?
I just switched jobs and just about maxed out my 401k this year at my old job, so I am trying to figure out when I can turn on 401(k) contributions at the new job without accidentally going over the limit for 2022.
I’m pretty sure it’s your check date and not the date it’s put in your 401k. My 401k
Contributions are usually the Tuesday after payday. However on my December check, it will show the total 401k
Contributions for the year including the most recent contribution. Those always seem
To match up on my W-2
When switching jobs mid-year I’ve been able to give payroll my YTD total from prior employer, then the new employer knows how to stay under the contribution limit. With that said, it’s pretty late in the year and payroll may not be able to process this sort of request fast enough? Wouldn’t hurt to ask, though.
How do I determine which calendar year a 401(k) contribution will fall in? Is it based on whether the paycheck falls in 2022 or 2023, or is it based on the pay period? Is there anything equivalent to a "late previous year" contribution prior to April 15, like there is for an IRA?
I just switched jobs and just about maxed out my 401k this year at my old job, so I am trying to figure out when I can turn on 401(k) contributions at the new job without accidentally going over the limit for 2022.
From a paycheck depends on the pay period. You can ask your HR to see which is last one for 2022 or the 1st for 2023. They will have schedule to show when pay periods ends.
Somewhat depends on what schedule you get paid. Maybe you get paid 1st of month for the month. For weekly, biweekly depends what day pay period ends, say Monday thru Sunday. Maybe you also need to turn in time sheet Monday to be processed by Wednesday & paid by Friday. Your pay stub will show what you got paid for.
For an IRA there is a line where you indicate your selection. You have until tax day in April to fund 2022 IRA. If you have the funds can deposit both 2022 & 2023 at the same time. The fund company will be happy to split it for you.
This would be good time to adjust your 401K deductions & review your W4 for FIT cash withholding.
New employer does not use same firm as old employer. So I would not assume it is coordinated between the two.
It’s 100% not coordinated and you could fully fund both accounts up until the irs comes knocking. It should go off of the date the month was withheld from you as it could take days/weeks to get deposited in your 401k
New employer does not use same firm as old employer. So I would not assume it is coordinated between the two.
That should not matter since everyone has to follow the same rules.
The question is if you ask your new employer to input your current 401k total contributions into their system so you do not exceed the cap will they do that. My guess is they probably can not do this but you could always ask.
You could stop your 401k for the rest of the year and put the money into a ROTH IRA.
Speaking for myself, I wouldn’t risk putting too much in the 401k this year. It can all be sorted out if there’s an overage, but I wouldn’t want the headache.
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