I know there are a few question about changing employers during a calendar year and trying to maximize company match between the two for 401k plans. I've read through them and I think I understand that, in general, if the plan allows for a corrective distribution, and you get this done before April 15th of the following year for the current year, then no harm no foul.
I am wondering if there are any differences with a Roth 401k situation. Especially since a regular 401k plan considers it an "excess deferral" due to the tax advantage, but in a Roth situation, this is post tax, so I'm unsure how this works.
Scenario:
Employer 1:
- employed from Jan 1, to Jun 3.
- Retirement plan: Enrolled in Roth 401k plan
- Contribution YTD: ~$15,600 (I was aggressive since I was unsure if this contract position would be renewed or converted to a direct hire position at the firm I was working at.)
- Employer match: No match
Employer 2
- employed Jun 6 to present
- Retirement plan: plan to enroll in Roth 401k plan
- Contribution: To be determined!
- Employer match: 6%
- Other: company also allows an extra $10,000 for after tax contributions to plan
- Pay period: biweekly paycheck
Questions:
- Should I overcontribute to get the maximum matching?
- Are there any tax considerations? (I assume no?)
- Any other considerations?