Maximize contribution to 401(k) after retiring?

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Astounding
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Joined: Mon Aug 15, 2022 2:17 pm

Maximize contribution to 401(k) after retiring?

Post by Astounding »

If retiring mid-year:

Is it possible within the year one retires, after termination of employment, to make up and reach one's 401(k) contribution limit if it was not reached prior to employment end, to somehow "re-characterize" already received after-tax salary received in pre-retirement months to contribute to and bump up total employee contributions to the 401(k) to max it out for the year?

Yes, one should and could plan for mid-year retirement to max out 401(k) contributions in many/most scenarios, but what about someone who might have life plans unexpectedly change, resulting in an early retirement?

My suspicion is that this is wishful thinking. And my online searches aren't returning anything helpful.

Thanks for any ideas!
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FiveK
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Re: Maximize contribution to 401(k) after retiring?

Post by FiveK »

Even if one were still employed, one cannot change 401k elections for previous paychecks, nor "add to" contributions except via future paychecks in that year. Thus your suspicion is correct: it's all water under the bridge at this point for a retiree.
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retiredjg
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Re: Maximize contribution to 401(k) after retiring?

Post by retiredjg »

Welcome to the forum. :happy

It is wishful thinking...unless you still have another paycheck coming and they are willing make a change in your contributions.
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Re: Maximize contribution to 401(k) after retiring?

Post by placeholder »

As someone who retired on 1/31 of a year I can only say that I wish that were possible although the little bit of the year did allow me to put my entire previous year bonus into the 401k.
sailaway
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Re: Maximize contribution to 401(k) after retiring?

Post by sailaway »

Obviously this advice won't help if OP is getting ready to retire tomorrow or has already retired:

We started front loading the 401k when DH developed health issues that might have lead to him to quit at any time. I should acknowledge that he had a matching program that did not punish front loading in any way.
placeholder
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Re: Maximize contribution to 401(k) after retiring?

Post by placeholder »

I did do a bit of front loading using the catch up provision because it allowed a higher percentage of salary per pay period even though I wouldn't contribute enough for actual catch up it added and extra bit to the 30% regular contributions.
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celia
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Re: Maximize contribution to 401(k) after retiring?

Post by celia »

Since contributions can only be withheld from pay checks, …you are already done (if no longer employed at the sponsoring employer).
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