Antiwork 2: No One Is Getting A Pay Raise

[Russell Jaslow]

But this discussion has led to another question that I will need to be answered. Mostly - does my company's contribution contribute to my yearly cap? If it does, then the additional money they will contribute instead of putting in my pension will cause me to hit that max much sooner, right? Or is it just what I contribute? Need to get that answered ASAP.

NO. Absolutely not. Your personal contribution is all that matters for the limit. Like I said in one of my responses, I make sure the company continues their contribution long after I hit my maximum. It's never a problem.

The reasons for a limit is the govenment doesn't want a 401K (or IRA or Roth IRA) to be a tax haven for ultra rich people. So, they limit it, otherwise, ultra rich people will contribute millions into a 401K. If the company wants to give you money, it's not really a means for ultra rich people to hide money. Also, if you make too much, your contribution limit (or ability to contribute at all to certain funds) is also curtailed.

 

[Kepler]

I haven't hired a financial advisor/planner yet because I manage investments pretty well on my own, but I have long felt that turning 40 is a good point to seek some professional advice, so I will likely do so in the near future.

We just do it to save our marriage. Like a GPS.

 

[WisconsinWildcard]

We just do it to save our marriage. Like a GPS.

Just gave a financial talk today to the residents and I put a note on many slides that divorce is expensive, so optimal financial plans at times should take a back seat to prioritizing a healthy marriage.

 

[Scarlet]

NO. Absolutely not. Your personal contribution is all that matters for the limit. Like I said in one of my responses, I make sure the company continues their contribution long after I hit my maximum. It's never a problem.

The reasons for a limit is the govenment doesn't want a 401K (or IRA or Roth IRA) to be a tax haven for ultra rich people. So, they limit it, otherwise, ultra rich people will contribute millions into a 401K. If the company wants to give you money, it's not really a means for ultra rich people to hide money. Also, if you make too much, your contribution limit (or ability to contribute at all to certain funds) is also curtailed.

OK thanks. I was hoping that was the case. I’m still going to call to confirm though.

 

[Russell Jaslow]

OK thanks. I was hoping that was the case. I’m still going to call to confirm though.

Absolutely confirm everything. Good luck.

 

[Kepler]

Just gave a financial talk today to the residents and I put a note on many slides that divorce is expensive, so optimal financial plans at times should take a back seat to prioritizing a healthy marriage.

a.k.a.

 

[Kepler]

Looks like Thom Yorke

Birth year checks.

My sister looks like my dad. My brother looks like my mom. I don't look a damn thing like either of em.

 

[Scarlet]

Absolutely confirm everything. Good luck.

I did call to confirm - and you were correct. Glad I did. I also found out the catch up contribution actually increases starting at 62, so hopefully I won't have that issue this year.