If you are an employee and contribute to your employer’s 401k plan, read on for more info...
We’ve been getting calls about how to owe less to the IRS this next tax season. Making a one time contribution to your 401k may help.
$19,500 is the annual maximum that can be contributed to a 401k ($26k if you are over 50). If you are in the position to contribute the maximum, but won’t get there by December 31st, consider doing a 1-time adjustment to your next paycheck. You’ll get a bigger tax deduction for the additional contribution (PAY LESS TAX!!) and you’ll get more tax deferred growth in your 401k.
We suggest reaching out to HR as soon as possible to find out the process.
Let us know if you have any questions.