401k

Sep 18, 2021 7 Comments

Asking for a colleague not on blind. She maxed out traditional 401k through employer A (no employer match). She changed jobs and is with employer B now. Employer B has a great 401k match. What, if anything, can she do to avail the 401k match benefit for 2021?

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 TOP 7 Comments
  • Google
    owqJ68

    Go to company page Google

    owqJ68
    See if they match after tax contributions. Probably not much to do.
    Sep 18, 2021 0
  • New / Eng
    erex12

    New Eng

     erex12
    Contact the old fund and tell them you over contributed by x amount. Any contributions and earnings/income based on the contributions will be returned and you’ll pay tax on them
    Sep 18, 2021 0
  • The max contribution amount is per calendar year, independent of employer. Match doesn’t count towards the max.
    Sep 18, 2021 1
    • Intel
      09kIWHv4

      Go to company page Intel

      09kIWHv4
      Most places trigger match based on employee contributions that are in the $19.5k that does follow you around despite match and "mega-backdoor" being in the $58k cap that is employer specific. It can be a logistical pain if you've already filled your $19.5k elsewhere.
      Sep 18, 2021
  • Google / Eng
    dogfoodie

    Go to company page Google Eng

     dogfoodie
    Ask the current 401k operator if they will remove excess contributions and gains at year end. If the answer is no, then she'll have to wait until next year to contribute.
    Sep 18, 2021 0
  • Accolade / Eng
    agoodhuman

    Go to company page Accolade Eng

     agoodhuman
    Next time she should amortize the distributions over the whole year. But this time it’d be best to chat with a certified accountant.
    Sep 18, 2021 0