An important consideration is what contributions are eligible for match and whether your plan has a true-up match. That varies by plan.
You need to contact your HR rep and ask the questions there.
You need to contact your HR rep and ask the questions there.
It depends on your employer's plan. It can be treated as a separate election or as second destination for your contributions after the limit is reached.
In my current employer's 401k plan I can designate percentages to regular contributions, catch-up contributions and after-tax contributions and allow the various limits to fill up at the rates I set. I can also just set a percentage for regular contributions and the plan will shuttle the money into the buckets in the order: regular > catch-up > after-tax as each fills up. This isn't universal though and your plan may treat your percentage instructions differently. I just set 25% contributions and the buckets in my plan fill up sequentially. I try to fill up the after-tax limit as well as regular $18.5K limit and catch-up limit. After-tax is the last bucket to fill in the sequence. Not all plans allow after-tax contributions and not all plans match them.
An important consideration is what contributions are eligible for match and whether your plan has a true-up match. That varies by plan.
You need to contact your HR rep and ask the questions there.
In my former employers plan, excess pretax contributions were automatically designated as after tax and when I rolled it over, the after tax went into a Roth, the pretax into a traditional IRA. Regarding matching, it is important to know when the matching occurs. If it is quarterly, for example, and you max out earlier in the year, you may miss out on some matching.
My plan does not do a true up
why don't they? ours does
even though we do a true up I front-load my catch up and contribute the remainder ratably throughout the year
maybe I'll front load the whole thing next year
why don't they? ours does
even though we do a true up I front-load my catch up and contribute the remainder ratably throughout the year
maybe I'll front load the whole thing next year