401(k) and Bonus Check

[youbet]

Quote:

Originally Posted by bUU Because I'm an old person with expectations and employers would prefer to hire kids and H-1Bs, who they can pay peanuts rather than matching my HCE salary. Oh, and did you miss the part where I said I was HCE? The fact that they pay so many kids and H-1Bs so little that they cannot afford to contribute to the 401(k), that's what makes being HCE an issue.

Your situation is 100% of your own making. If you don't like your employer or the way things are, snatch something else. You're not at all stuck where you are. You're there by choice.

[Johanson]

I used to change my contributions based on expected overtime but I discovered that payroll didn't keep up with the changes so when I did increase the contribution, it might not hit for 2 paychecks. I would do this with the expectation that a much larger pay period earnings would change the withholding rate so a counter higher 401K contribution would not only lower the withholding rate, the increased withholding would still leave me more take home due making more money.

Regarding maxing out one's 401K and losing the company match, that all depends on your employer. Mine switches a person's contributions to After Tax after hitting the max. This is directly from my plan's contributions page:

"Contribution changes will take effect on the next available payroll period following your election.
Once you reach the IRS contribution limit for the current year ($18,000), both your before-tax and Roth 401(k) contribution elections will automatically default to after-tax contributions for the remainder of the year unless you elect otherwise via the IRS Contribution Limit page."

And the following is from the above mentioned page:

"The following is a summary of your options once you reach the IRS contribution limit:
1. Change all before-tax and Roth 401(k) contribution elections to after-tax, up to the Plan
maximum (default)
The change to after-tax will occur in the same paycheck in which you reach the IRS limit
You will maintain your total contribution level and company matching contribution
2. Change all before-tax and Roth 401(k) contribution elections to after-tax, up to the amount
required to maintain the maximum company match contributions
The change to after-tax will occur in the paycheck following the paycheck in which you reach the IRS limit
You potentially may not maintain your total contribution level and maximum company match contribution
You will not be able to make up any missed employee and company matching contributions in a later paycheck
3. Cancel all before-tax and Roth 401(k) contribution elections
You will not maintain your total contribution level and maximum company contribution
You will not be able to make up any missed employee and company matching contributions in a later paycheck
"

[bUU]

Quote:

Originally Posted by youbet Your situation is 100% of your own making. If you don't like your employer or the way things are, snatch something else. You're not at all stuck where you are. You're there by choice.

I never said anything to the contrary. You seem to be replying to a lot of things that neither I nor anyone else in this thread has said. Nothing about my situation mitigates the fact that they don't offer a safe harbor plan. Nothing about my situation mitigates the fact that it will affect my options and have a detrimental effect on my co-workers. Let's stick to discussing the things that people are actually talking about instead of going off on strange and Wild tangents.

[youbet]

Quote:

Originally Posted by bUU I never said anything to the contrary.

Good. When you were talking about lower paid H1b visa folks, etc., I must have misinterpreted what you were saying.

[bUU]

Quote:

Originally Posted by youbet When you were talking about lower paid H1b visa folks, etc., I must have misinterpreted what you were saying.

Must have. With that comment, I was answering your specific question - nothing more.