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2024 401K limit is $23,000. Catch up is $7,500. Since you've instructed your payroll department to distribute 100%, you’ll get a zero paycheck until you reach the Catch up limit. After that you’ll receive 72% of your net pay until you max out the $23,000 limit.
Hmm so no taxes taken out for how ever long it takes to reach the limits? Wonder what would happen to normal deductions like Medical? would you "Owe" the company for several months, resulting in a cancellation of your health insurance?
Quote:
Originally Posted by Okey Dokie
I worked for the USPS and IIRC it was FICA/Medicare first, then any court ordered garnishments, federal income tax, state and local taxes, Civil Service/FERS, health insurance, life insurance, then Thrift Savings Plan (our 401-k), and then any allotments going to other bank accounts.
This doesn't make sense, your 401k amount reduces your taxable income, so I would think the 401k deduction would be higher in the list than Taxes, since the 401k amount directly affects taxes withheld. It would make sense that any medical / life insurances deductions would occur before the 401k deduction from your check, as well as Medicare since 401k withheld has not affect on these numbers.
I was doing ~75% catchup 401K, and ~20% regular 401K and 5% after tax. They did the first 2, but did 0% for the last
They didnt withhold any federal tax since I had $0 income (but did some state stuff), but what might be a little scary is that they didnt take out any insurance/benefits premiums (dental, medical, LTD, , or transit or HSA)
The other interesting thing is that they gave me an extra ~$400 under "earnings" for my pay and called it "Recalculation Difference" to cover the taxes I did owe (workers comp, Social Security, commuter account, ...)
Guess next pay I will have double of some of the missing stuff and the "load" next paycheck
2024 401K limit is $23,000. Catch up is $7,500. Since you've instructed your payroll department to distribute 100%, you’ll get a zero paycheck until you reach the Catch up limit. After that you’ll receive 72% of your net pay until you max out the $23,000 limit.
You are off on the limits. It’s 69k or 76.5kif you are catchup eligible
I was doing ~75% catchup 401K, and ~20% regular 401K and 5% after tax. They did the first 2, but did 0% for the last
They didnt withhold any federal tax since I had $0 income (but did some state stuff), but what might be a little scary is that they didnt take out any insurance/benefits premiums (dental, medical, LTD, , or transit or HSA)
The other interesting thing is that they gave me an extra ~$400 under "earnings" for my pay and called it "Recalculation Difference" to cover the taxes I did owe (workers comp, Social Security, commuter account, ...)
Guess next pay I will have double of some of the missing stuff and the "load" next paycheck
Did you have fica withholding? If not that would be the biggest problem I’d see with the order of how it worked other than the fact they may be fronting you that 400.00 a recover it down the road. If you were short they should have lowered the retirement contributions
Did you have fica withholding? If not that would be the biggest problem I’d see with the order of how it worked other than the fact they may be fronting you that 400.00 a recover it down the road. If you were short they should have lowered the retirement contributions
Have you called HR/payroll?
Yup, both SSI and MC. Paid on salary but NOT the "loan" they gave me. Only other things were Disability, Family Leave and one state tax.
So the whole pay stub was:
income:
salary
loan
non-cash earnings (the taxable part of the life insurance they give me)
deductions:
401K & catch up
SSI
MC tax
State Tax
Disability
Family Leave
so they caught up on things for the 2nd paycheck. Double health insurance and double "after tax 401K contribution". Also made me pay back the loan. So I guess my experiment is done
I posted the employee contribution limits since the OP was interested in the effect on his paycheck. Employer match is irrelevant to that discussion.
And the limits for employees aren’t limited to what you believe they are.
Employee contributions pretax 401k and Roth 401k are limited to 23k-30.5k
+
Employer match
+
Employee after tax non Roth contributions
These three combined are limited to 69-76.5k. If you got no employer match you could put 69-76.5k in the after tax non Roth bucket if you wanted to in 2024
so they caught up on things for the 2nd paycheck. Double health insurance and double "after tax 401K contribution". Also made me pay back the loan. So I guess my experiment is done
No surprise. Correcting on the next check is pretty much always how these situations are handled.
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