Yes that limit is per person, irrespective of account.
It’s worth checking if you’d even get that much match in a 4-5 month timeframe however. My job only matches X% of each paycheck, so you can’t front load your contribution and get a full match in one month. Idk your salary and match percentage, but you’ll have to run those numbers and see what you’d receive
Thanks. They match x% of your contribution up to a certain amount. Same match if you lump sum the $24.5k in one paycheck or distribute throughout the year.
Yes. The employee limit is the same across all accounts. Does new job allow contributions and matching the first year? That may be the deciding factor.
My current match is so atrocious it’s like $2k per year. New match is closer to $9k.
ETA: only other scenario I can think of is if current employer had mega backdoor Roth and new employer doesn’t. But that’s not the situation (neither has it).
I gotcha. If you can max out at new employer, I’d do that. Just make sure it hits $9k since they will only pay you for part of the year
Sucks no mega back door Roth. We started it a couple years ago, but my understanding is we will fail top heavy testing and get some refunds next year. Still good to have somewhere to stash some extra money.
Thanks. I think I’m following you. They have/do true up… so I should be good, right?
My wife just got mega backdoor this year around August or September. She usually distributes the 403b contribution over 12 months so we had to make some changes to max the mega backdoor with this year, but we’re happy to have it.
My new employer also has an additional employer contribution that starts your second calendar year. 3% of gross income into the 403b.
Not sure what you mean by true up. I’m referring to my company’s mega back door being used mostly by the high income earners so it fails top heavy discrimination testing. Plans need to show more use by people throughout income levels based on my limited understanding.
Yeah I try to spread out my contributions over 6 months or so. Just makes it like dollar cost averaging.
That’s wild, I’ve never heard of that before. Then just make sure that you get match right away because some places have you wait 6-12 months before they match.
Yes that limit is per person, irrespective of account.
It’s worth checking if you’d even get that much match in a 4-5 month timeframe however. My job only matches X% of each paycheck, so you can’t front load your contribution and get a full match in one month. Idk your salary and match percentage, but you’ll have to run those numbers and see what you’d receive
Thanks. They match x% of your contribution up to a certain amount. Same match if you lump sum the $24.5k in one paycheck or distribute throughout the year.
Well then that’s really nice. Seems to be the way to go
Yes. The employee limit is the same across all accounts. Does new job allow contributions and matching the first year? That may be the deciding factor.
Thanks. Yes they do matching the first year.
My current match is so atrocious it’s like $2k per year. New match is closer to $9k.
ETA: only other scenario I can think of is if current employer had mega backdoor Roth and new employer doesn’t. But that’s not the situation (neither has it).
I gotcha. If you can max out at new employer, I’d do that. Just make sure it hits $9k since they will only pay you for part of the year
Sucks no mega back door Roth. We started it a couple years ago, but my understanding is we will fail top heavy testing and get some refunds next year. Still good to have somewhere to stash some extra money.
Thanks. I think I’m following you. They have/do true up… so I should be good, right?
My wife just got mega backdoor this year around August or September. She usually distributes the 403b contribution over 12 months so we had to make some changes to max the mega backdoor with this year, but we’re happy to have it.
My new employer also has an additional employer contribution that starts your second calendar year. 3% of gross income into the 403b.
Not sure what you mean by true up. I’m referring to my company’s mega back door being used mostly by the high income earners so it fails top heavy discrimination testing. Plans need to show more use by people throughout income levels based on my limited understanding.
Yeah I try to spread out my contributions over 6 months or so. Just makes it like dollar cost averaging.
Are you going to qualify in time?
I don’t see why not. What reasons would I not?
Many workplaces require you to wait 6 or 12 months after starting before you can contribute to a 401k
This. Got burned big time
Also what is vesting schedule like? I’ve been at places anywhere from 3-5 years to fully vest.
100% immediate
That’s wild, I’ve never heard of that before. Then just make sure that you get match right away because some places have you wait 6-12 months before they match.
Didn’t know this was uncommon. My residency, current employer, and new employer are all that way