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Deadline for 401k contributions for 2018?

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  • Avatar dermie 
    Participant
    Status: Physician
    Posts: 9
    Joined: 09/06/2018
    Earnest refinancing bonus

    I apologize for my naivete but just graduated residency and started first attending job 3 months ago. Its an employed position and I have access to their 401k plan. They were very slow letting me set up contributions so I just started contributing from my paycheck earlier this month and will be well under the maximum contribution I was hoping to put in for 2018. I just wanted to see if anyone had input on what my options are..is there any way to contribute more to a 401k for 2018. I have already maxed out backdoor Roth IRA and traditional IRA for this year.

    Thanks!

    #175780 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6901
    Joined: 01/09/2016

    I’m sorry, but you’ll have only through the end of the year payroll to contribute to your work 401k. If you have another paycheck coming, you could see if you can withhold 100% for your 401k, hope that’s a possibility.

    otoh, if you have a solo-k, you have until the due date of your tax return, including extensions.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #175783 Reply
    Liked by MPMD
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1691
    Joined: 03/01/2018

    I apologize for my naivete but just graduated residency and started first attending job 3 months ago. Its an employed position and I have access to their 401k plan. They were very slow letting me set up contributions so I just started contributing from my paycheck earlier this month and will be well under the maximum contribution I was hoping to put in for 2018. I just wanted to see if anyone had input on what my options are..is there any way to contribute more to a 401k for 2018. I have already maxed out backdoor Roth IRA and traditional IRA for this year.

    Thanks!

    Click to expand…

    you need to get the employee deferral election form for the plan ASAP to change your deferral on any final paychecks, if you want to maximize your contributions

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #175787 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3002
    Joined: 01/08/2016
    . I have already maxed out backdoor Roth IRA and traditional IRA for this year.

    Click to expand…

    please clarify this….you only get 1 IRA contribution per year.

     

    i assume you mean you performed a backdoor rIRA….just worded it wrong…

    #175788 Reply
    Avatar dermie 
    Participant
    Status: Physician
    Posts: 9
    Joined: 09/06/2018

    Thanks so much for the input! I figured this this was the case. I changed my deferral form so that 100% should go towards the 401k and sent several emails to benefits..hoping I’ll at least be able to contribute all of my last paycheck. And yes to clarify I was referring to backdoor roth IRA.

     

     

    #175832 Reply
    Avatar dermie 
    Participant
    Status: Physician
    Posts: 9
    Joined: 09/06/2018

    I have an update with the situation and a follow-up question. I was able to withhold 100% of my last paycheck (12/28) before the end of 2018. However, I just logged into the website for my 401K and it appears that due to the holidays the transaction was listed as 1/4. Would this still be considered part of my 2018 contribution limit since that was the time of the paycheck that was withheld?

     

    Thanks!

    #180278 Reply
    Avatar Bmac 
    Participant
    Status: Physician
    Posts: 279
    Joined: 10/21/2017

    Depending on the website of the plan, the easiest thing to do might be to search contributions by calendar year or something. At least with Fidelity I can search transaction history by quarter or custom dates, etc. If it shows the contribution in 2018, then you are probably good. The date of contribution and transaction settlement could be different.

    #180281 Reply
    Avatar dermie 
    Participant
    Status: Physician
    Posts: 9
    Joined: 09/06/2018

    Thanks! It is listing the contribution as on 1/4 even though it was withheld from my 12/28 paycheck. Not sure why there was such a long delay.

    #180289 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 1963
    Joined: 05/01/2017

    Thanks! It is listing the contribution as on 1/4 even though it was withheld from my 12/28 paycheck. Not sure why there was such a long delay.

    Click to expand…

    isnt that probably just however many biz days it took to transfer including holiday?

    that’s basically 4-5 biz days given the holiday. it’s probably just reflective of the fact that your 401k contributions don’t direct deposit same day.

    my guess is that it’s for 2018. curious to hear resolution if you find out for sure though.

    #180301 Reply
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1691
    Joined: 03/01/2018

    you’re fine. I’m sure you’ve already checked your pay stub and made sure the deferral amount is accurate there. Most employers don’t make retirement plan deposits same day as payroll. When you get your W-2, the calendar year deferral amount will be reported in box 12 with a code D if it’s a pretax deferral, so you can and should check that number and code for accuracy

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #180308 Reply
    Liked by ENT Doc
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1507
    Joined: 02/01/2016

    The “pay date” on the payroll is what matters.

    Not the pay period, not the payroll deposit date which may before the pay date at certain financial institutions and not the contribution deposit date.

    #180364 Reply

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