It looks like my wife's employer is limiting her 401K contributions to 15% of her salary. This means we cannot max out the $17.5K contribution limit set by the IRS. Say her salary is $70K and we are limited to $10.5K – that leaves $7K of pre-tax contribution limit that we cannot make use of.
This seems to be legal for the employer to do (Can my employer limit my maximum 401k contribution amount (below the IRS limit)?), but odd since we want to make use of all pre-tax savings opportunities we have and really want to max out the full $17.5K.
What options do we have to max out the pre-tax contribution limit? Is it possible to contribute to the 401K from after tax salary and ask for a refund? Can we pressure the employer to raise the limit for her?
Unfortunately, our combined income is above the allowed combined income to fund an IRA, so we cannot contribute to IRA or Roth IRA.