Thursday, November 16, 2006

Will I have time to Max out my 401k contribution for 2006?

Potential crisis here!
Big Company takes time to register new employees into the 401k.
It also limits the percentage of payroll (employee salary deferal) that may be transfered into the 401k.

Having just recently received the enrollment package I don't think I'm going to have enough payrolls to make my $15k maximum!! How frustrating!

I can still probably contribute to my old solo 401k, but I'd rather not - my accountant says I'd need to pay (as an employer) payroll tax on the entire contribution - something I wouldn't have to pay with my employer.

The next step is to burn time calling HR and asking them what can be done - the retirement plan administrator insists that they will not retro 401k contributions - further there is no option to do so (apparently).

How aggrevating!

At least I've been paid my base salary and the money correctly made it into my checking account.

New company is quite fun - lots of smart people - mind boggling how much there is to learn. Actually I've been plunged into so much activity it's hard to find the time to learn. I'm heading in early today to do so.

Have a great day,

  1. Can you advise an approach to allow me to maximize my 401k contribution this year, despite having not enough payrolls to do so with Big Company?
  2. Have you heard whether or not a c corporation must pay payroll taxes on salary deferal for an individual or solo 401k?

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