401k starting in December — not enough paychecks for full contribution?
I have recently started a new job in September. My first date when I can start participating in 401k is December 1. I am paid bi-weekly. I expect two paychecks in December. First paycheck on December 6 and second paycheck on December 20. I would like to contribute maximum amount of 23k allowed for 401k for the whole 2024 year. I understand that I can contribute the full amount of the second paycheck to 401k, but can I ALSO contribute the full amount of the first paycheck toward 401k or I can only contribute the earnings from the first paycheck from December 1 to December 6 toward the 401k? I can only get to 23k maximum allowed 401k yearly amount if I am to use two full paychecks.
Permalink Submitted by Alan - IRA critic on Sat, 2024-10-05 20:01
The answer depends on the details of the plan eligibility requirements. You would have to ask the plan administrator if all salary paid on 12/6 is eligible, or only salary earned in December.