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Questions tagged [contribution]

Money put into retirement plans, political campaigns or charities are known as contributions. Questions here may be around the limits of how much one can contribute in various situations to various plans they may access.

2
votes
2answers
33 views

Correcting a post-tax HSA deposit?

Due to a payroll error at work, my HSA contribution got put in twice for the first pay week. Once pre-tax and once post-tax. The extra total amount being in there is fine as it won't cause any limit ...
2
votes
1answer
84 views

Are contributions to 401k outside of payroll pre-tax?

Between my payroll deductions for 401k and my employer's contribution, I don't get to my $18,500 + $6,000 catch-up limit for 2018. If I put money into the 401k account from my own funds/savings to ...
10
votes
1answer
2k views

If I have a 401k for a partial year can I still contribute the maximum amount?

I will only have a 401k for part of this year. Am I still able to contribute up to the maximum contribution limit ($18,500 in 2018 this year) even though I only will have the plan for part of the ...
9
votes
3answers
363 views

How to intentionally overcontribute to 401(k) to maximize new employer's matching?

I knew that I was going to leave my former company for one of the Bay Area startups. Expecting that I would not have a 401(k) account there, I frontloaded my contributions and maxed out my 401(k) ...
4
votes
2answers
206 views

Can a “rehired retiree” contribute to the company's 401K plan?

I retired last year (early at 55), and was recently called back in to work at my old employer as a "rehired retiree" (hourly, part time for less than 1000 hours, no prior promise of employment, etc). ...
3
votes
1answer
174 views

Can a year-end true-up employer match exceed the 401(k) maximum contribution, in which case the employee would past of their 401(k) contributions?

In some firms, the true-up employer match for year X is received the next year (i.e., year X + 1), but it counts toward the 401(k) contributions for year X. One of the main reasons why the employer ...
1
vote
1answer
50 views

For 401k (or IRA contributions), does it matter which part is catch-up?

When you are over 50, you get an additional allowance for the amount that you can contribute to 401k - in addition to the usual limit of $ 18500 (in 2018), you are allowed to contribute $ 6000 of '...
0
votes
1answer
69 views

Leaving a High-Deductible Health Plan (HDHP) during the year: can one still fully contribute to one's HSA? [duplicate]

Bob has a High-Deductible Health Plan (HDHP) and wants to maximize his contributions to his Health Savings Account (HSA). At some point during the year, Bob changes his health insurance from an HDHP ...
1
vote
1answer
145 views

401k employer vs personal limits

What are the combined limits for a 401k (either traditional or roth) when employer issued vs private? If someone is not eligible right now for employer 401k, so they invest 4k privately over 2018 (...
4
votes
1answer
126 views

Can I contribute to an IRA without any U.S. earned income?

I used to live in the U.S. on a H-1B and returned to my home country in the year 2017. However, I still have some U.S. ETFs and equities in a brokerage account. I also have a IRA account. I have no ...
4
votes
1answer
327 views

Is there a way to undo 401k contributions?

I made a mistake... To give some context: for the first 3 months of 2018 I was working in Texas at a company that matched the first 4% 401k contribution. I had been looking for a different job and ...
3
votes
1answer
77 views

Implications of withdrawing Roth IRA contributions before age 59?

What repercussions, penalties, fees, or additional taxes exist on withdrawing contributions (basis) from a Roth IRA account under 59 years old? For example, suppose I have contributed $5,500 for 5 ...
0
votes
1answer
127 views

Getting around discrimination clause on 401K contributions?

I would like to take advantage of the increased employer contribution limit. I realize that my employer cannot change our plan for just some people. But what if it was for all employees? How creative ...
5
votes
1answer
222 views

Can I make a lump-sum contribution to a SIMPLE IRA?

My employer offers a SIMPLE IRA plan to which I can contribute 3% of my salary. My employer contributes a 3% match. The employee contribution limit of $12,500 is far higher than the 3% amount I will ...
1
vote
0answers
90 views

Spouse Pre-Tax HSA Contribution

My wife and I each have (unrelated) individual insurance through our respective employers, one Blue Cross/Blue Shield, the other Aetna. Because I already have a HDHP with an HSA, she is barred from ...
4
votes
1answer
173 views

Is there any benefit to contributing to 401(k) throughout the year?

Let's say that I'm going to max out my 401(k) contribution limit for next year. ($18,000) My company offers no 401(k) match. Typically in years past I have contributed a percentage of my check every ...
2
votes
1answer
62 views

Maximum 401(k) contribution at end of year self employed?

I have 401(k) through work that gets contributed monthly and it has maxed out contributions for the year ($18K). My wife doesn't have 401(k) and is self employed. If she opens 401(k) at the end of ...
3
votes
1answer
123 views

Contributing to 401k and IRA in the same year [duplicate]

For 2017 the IRA contribution limit is $5500 and 401k contribution limit is $18,000. Could you contribute $5500 to the IRA and $18,000 to the 401k in the same year or are you limited to one account or ...
3
votes
2answers
299 views

IRA yearly contribution limit

With the yearly contribution limit of an IRA being $5500, are you allowed to open mutliple IRAs and does this make sense? I was curious what people who want to invest more into a retirement account ...
9
votes
1answer
5k views

Does employer matching count toward the yearly 401(k) limit? [duplicate]

The federal government limits how much I can put into a 401(k) per year. For 2017, I think it's $18,000. Is this just my contributions, or does it count employer matching?
0
votes
1answer
217 views

Assuming you really wanted funds in your 401k, doesn't paying interest in a loan accomplish that, even though it is post-tax funds

Although paying off a loan to your 401k most likely comes from post-tax sources, if you merely wanted to move more money into your 401k than would otherwise be possible, doesn't this accomplish that? ...
38
votes
4answers
7k views

What is the logic behind a 50% of X% 401(k) contribution match?

In the situation where an employer is contributing a match to a 401(k), apparently a common formula is to match 50% of employee contributions up to a percentage of their salary. I have also seen this ...
0
votes
1answer
193 views

What are pros/cons of having 401K contribution taken out of retro pay?

I am due retro pay for 6 month at my workplace. It is about two thousand. I was asked if I want my 401K contribution taken out of my retro pay. What does that mean for me? Will it be more money ...
6
votes
2answers
2k views

Can I withdraw a non-deductible traditional IRA contribution without penalties in the same tax year?

I just spend two hours going through IRS Publication 590a, and reading all related question here and in some other places (none matched this question exactly). Situation: X is over 50 and ...
4
votes
3answers
460 views

Can I make a Roth IRA contribution for the past tax year as well as the current year?

I did not contribute to my Roth IRA in calendar year 2016. I have already filed my 2016 taxes, and plan to make my 2016 Roth IRA contribution before April 2017. Once I do that, am I still able to ...
7
votes
2answers
850 views

What happens to the company match for a 401k over-contribution?

Suppose that I change jobs halfway through the year. My first employer matches 50% of 401k contributions. By the time I leave, I've already contributed enough to hit IRS limits: $18,000 in my ...
6
votes
2answers
136 views

Should I contribute the maximum annually to my HSA or only enough to cover the out-of-pocket maximum?

I am young, healthy, and rarely use my HSA for any kind of relevant expenses. I might use it once a year for a prescription or something, but I'm certainly not maximizing the use of my funds (I don't ...
3
votes
2answers
166 views

Invest all at once after maxing out Roth IRA - or each time I contribute?

When I transfer money to my Roth IRA account, it keeps it in a cash account until I invest it (doesn't do it automatically). It takes me around 6 months to get to my $5500 limit. Is it better to ...
4
votes
1answer
1k views

Max Contribution to IRA, Roth, and Both

Question: I am looking for maximum allowed contribution to Traditional IRA Roth IRA Traditional IRA and Roth IRA combined Searched IRS, and it is confusing Website says For 2015, 2016, and 2017,...
5
votes
1answer
382 views

Do political campaign contributions count as gifts for tax purposes?

If I donate to a standard U.S. (non-charitable) political campaign, does that amount reduce my annual and/or lifetime gift allowance? do I have to report that amount somewhere on my federal tax ...
4
votes
2answers
131 views

Can I contribute to Health Savings Account mid year, outside of when I enrolled?

I failed to contribute to my HSA account when my company asked to enrolled for it. Is it still possible for me to contribute to it and also get the tax deduction ? If yes, I should be able to specify ...
1
vote
0answers
23 views

When can I start contributing to my Spousal RRSP again without attribution implications?

I have a question about the Spousal RRSP that I want to validate. When can you start contributing back to a Spousal RRSP after a withdrawal has been made? Summary of actions taken so far: My last ...
29
votes
5answers
7k views

Why would someone who thought they will work until they die contribute to a pension plan?

One of the shocking graphs going round at the moment is from many millennials expect to work until they die: Now I'm a UK millennial who wants to retire early, however if I did think I were going to ...
0
votes
2answers
490 views

Employer RRSP match vs. contribution limits for recent grad with no RRSP room?

I'm just starting my first job ($55k), which includes an employer RRSP match up to 5% of my income. I only have $500 of RRSP deduction limit for this year as I have never worked before. Can I ...
7
votes
3answers
240 views

How to maximize small business 401k contribution?

We own small business (C-Corp without S-election) that currently does not have employees outside the owners (three of us). The business is producing a nice amount of revenue and as of yet none of us ...
3
votes
1answer
3k views

In a Canadian TFSA, does interest earned within the account count toward the contribution limit?

I know that there is a limit in the contribution per year in a TSFA. At the moment (2016), if you have never made a contribution then you can contribute around $ 46 500. BUT, even though all ...
1
vote
1answer
108 views

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week?

If I auto deposit every week into a Traditional IRA, can I keep doing a backdoor conversion to a Roth IRA every week? How does that affect my taxes? Do I get taxed on the earnings each weekly deposit ...
0
votes
1answer
35 views

Class of shares specifically for retirement accounts with contribution limits

Regarding US retirement accounts like a 401k or IRA, can a corporation (or any entity) get around employee contribution limits by contributing a class of shares that have a certain value but get ...
6
votes
1answer
105 views

Can a 403b contribution be rescinded?

My wife started a new job very late in 2015. She signed up for the retirement plan, a 403b plan and contributed approximately $200. Now doing our taxes, (married, filing jointly) we find we cannot ...
3
votes
1answer
939 views

How much money should a “fully-funded” 529 account contain to pay for a student's education?

What is the maximum, reasonable amount one might put into a 529 college savings account for the benefit of a single future student? 529 accounts have maximum allowed balances between $235k and $400k ...
5
votes
1answer
560 views

US tax handling of UK pension contributions

The UK currently has a pension (SIPP) contribution limit of up to 40,000 GBP per year (approx 60,000 USD at current exchange rates). 100% of this amount can be self-funded, in which case your ...
-1
votes
2answers
75 views

How religiously should Dollar Cost Averaging be followed?

IF I simply interpret Dollar Cost Averaging as a method of putting an amount x in my investment every month through thick and thins of the market, then I am contradicting what the article in ...
1
vote
0answers
111 views

How can I calculate an employer 25% contribution for a solo 401k in advance?

My situation: I am the sole employee of an S-Corp. In 2016, based on a reliable contract, I can expect a gross of $80K. Typically, I have $2-3K in expenses. I'm under 50. Because of our overall ...
4
votes
2answers
81 views

Are we eligible for a traditional IRA contribution this year?

My wife and I will be making around $143,000 this year. My wife is disabled, and $48,000 of it is from past and current Social Security disability paid in the same year. (Approx. $38,000 was paid from ...
5
votes
2answers
168 views

Resolved: Why is the IRA contribution limit $6,500 in the examples provided on the IRS website about the subject?

This issue has been resolved: the website has been updated and the typos corrected. So I wanted to verify that the IRA contribution limit was, as I originally thought, $5,500. I went to the IRS ...
2
votes
1answer
135 views

Is it possible to add money to an existing rolled over IRA when I have a 401(k) from work?

I contribute about 12% of my income to 401(k) which comes to about 15000 a year or so. My employer doesn't match anything due to nature of the contract. I have been investing in 401(k) since 2012. I'...
16
votes
1answer
3k views

Is an employer within their rights to limit 401k contributions to 25% of compensation?

I would like to ask a specific question regarding employer limitations on 401k contributions. I have read other posts in the forum that explain that limitations often exist on highly compensated ...
3
votes
5answers
4k views

Are Roth 401(k) after-tax contributions at a disadvantage for maximizing employer match money?

I feel like there is a negative to Roth 401(k)s that I haven't seen mentioned anywhere after doing some major research. Assuming the employer match amount is a percentage of the after-tax amount that ...
1
vote
3answers
159 views

Does Maxing my Roth IRA Early in the Year Provide More in the Long Run?

Recently, I've been looking into investing into a Roth IRA since I'm in the lower end of my twenties. Due to no employer match and feedback from co-workers, I felt this would be a good option to ...
1
vote
1answer
345 views

401k contributions explanation

I have a basic question on 401k investment. Below is what my company is matching: XYZCompany will match your contributions, up to 4% of your eligible compensation, to a maximum of $10,600. Now I ...