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front load 410k if leaving group?

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  • One Wet Bandit One Wet Bandit 
    Participant
    Status: Physician
    Posts: 47
    Joined: 10/14/2017

    I will be leaving my current group which offers a 401k for another group that does not offer a 401k early next year. Can I attempt to get all 18,500 (for 2018) into my current groups 401k plan before I leave(from Jan 2018- end date), or do I have to prorate it for the amount of time I’m with the group?  For example, if I plan on leaving in June, can I only place 9000 or so into it, or can I place all 18500?

     

    thanks

    #81314 Reply
    Avatar dentoid 
    Participant
    Status: Dentist
    Posts: 86
    Joined: 02/08/2016

    Load it up, HSA is prorated.

     

    #81316 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4405
    Joined: 01/08/2016

    yup. you can fill it as fast as allowed.

    #81323 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2484
    Joined: 05/01/2017

    not only can you do this but it would be an excellent idea.

    when my wife finished residency and started as faculty we juiced up her 457b/401k just w/ Sep-Dec. Made for some impressively scrawny paychecks to start out though!

    theoretically you could fill it up with a lump sum payroll deduction in january, but at least for us we only get matching funds during pay periods where we are contributing so i would ask about that

    #81334 Reply
    Kon Litovsky Kon Litovsky 
    Participant
    Status: Financial Advisor
    Posts: 920
    Joined: 01/09/2016

    I will be leaving my current group which offers a 401k for another group that does not offer a 401k early next year. Can I attempt to get all 18,500 (for 2018) into my current groups 401k plan before I leave(from Jan 2018- end date), or do I have to prorate it for the amount of time I’m with the group?  For example, if I plan on leaving in June, can I only place 9000 or so into it, or can I place all 18500?

     

    thanks

    Click to expand…

    Actually, you can have two $54k limits, one for each group (with $18500 in common).  Whether you front-load or not is probably not as important as whether you can get any profit sharing from either group, and how that would be structured.  Some groups allow profit sharing only contributions, others don’t, so I would find out about maxing out your contribution into both plans, if that’s possible at all.

    Kon Litovsky, Principal, Litovsky Asset Management | [email protected]
    -401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

    #81873 Reply

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