401K Catchup Amount

[MikeD]

Vanguard only took $3,000.00 for my wife's 401K catchup amount this year. Is that the correct maximum amount? She thinks it should be $4,000.00. They took $14,000.00 for the regular 401K so they reached the max on that.

Thanks,
Mike D.

 

[Outtahere]

Yes it should have been $4000, next year it goes to $5000 and is adjusted after that for inflation.

 

[MikeD]

Thanks. My wife talked to HR and they are taking the remaining $1,000.00 out of her last paycheck! Apparently, Vanguard didn't take the right anount out each pay period. Well, at least HR is blaming Vanguard.

Mike D.

 

[Outtahere]

Mike my payroll company did that to me too. They stopped taking any contributions after I hit the $14,000 limit. I called, chewed them a new one let them know the problem and then wrote a check for the catch up.