Just joined a new company. Haven’t contributed to 401k this year or even before. I’m super late to the party.
My base is 185k and employer matches 50% of up to 7% i.e., 50% of 12950(185k*.07) is $6475. In order to take maximum advantage of employer contribution, can I contribute $3237(12950/4) each month for next 4 months, I mean rest of the year ?
I understand that 12950 can go to 19500 since that’s the limit, which brings down my tax bracket. Are there any other pros to maxing out?
TC 300k
8 yoe
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Also, make sure to max out the mega backdoor, too; that's in addition to the 19.5k limit (often about 30k extra).
A lot of companies offer it:
https://www.levels.fyi/benefits/Mega-Backdoor-Roth-IRA/