contribution of more than $18,000 to 401k - no refund?

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KATNYC
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contribution of more than $18,000 to 401k - no refund?

Post by KATNYC » Fri Jun 16, 2017 10:08 am

There is a percentage contribution system for 401K contributions, not a dollar amount. Because of this system, it's not possible to contribute exactly $18,000 to the 401K for 2017. We inquired about what happens if too much is contributed and the response was:

"What it means is that if your contribution is $18,346 then we will only take 18,000 and there is no refund."
I asked for clarity and the second reply was "See prior response."

What happens to the $346? It doesn't make sense that $346 is not refunded in any way. I suspect the 401K call center is now outsourced (just like our new IT department & new accounting dept) and what they really mean is $346 won't be accepted at all and just included in the regular paycheck. I've read that contribution overages need to be corrected by April 15 of the following year but it seems like this plan administrator has systems in place to prevent contributing more than $18,000.

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marti038
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Re: contribution of more than $18,000 to 401k - no refund?

Post by marti038 » Fri Jun 16, 2017 10:12 am

At my company they just stop putting money in your 401k when you hit $18,000 and the rest comes home in your paycheck until the next calendar year begins.

I don't think they can just keep your $346, but it sounds like you're working with illogical, procedural sheep. Good luck.

Dude2
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Dude2 » Fri Jun 16, 2017 10:16 am

What generally happens is that 18,000 is "before tax" and the remainder is "after tax". It goes into the same pot (wherever you are investing it in the 401k), but you actually have to keep track of the amount you contributed "after tax". Are you going to remember this happened in 2017 in 2047 when you retire? So, basically you just eat the tax you paid now, and pay taxes again on the money when you withdraw it in retirement. I'd be surprised if your 401k actually prevented you from contributing "after tax" money. Smart people figure out how to short their contributions (make it total to under 18,000), and then they send a check in December to total it out. It is probably less of a hassle to just short it by a certain amount and not worry about it. Whether you pay the tax now or later, you still pay it eventually.

Spirit Rider
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Spirit Rider » Fri Jun 16, 2017 10:20 am

KATNYC wrote:There is a percentage contribution system for 401K contributions, not a dollar amount. Because of this system, it's not possible to contribute exactly $18,000 to the 401K for 2017. We inquired about what happens if too much is contributed and the response was:

"What it means is that if your contribution is $18,346 then we will only take 18,000 and there is no refund."
I asked for clarity and the second reply was "See prior response."

What happens to the $346? It doesn't make sense that $346 is not refunded in any way. I suspect the 401K call center is now outsourced (just like our new IT department & new accounting dept) and what they really mean is $346 won't be accepted at all and just included in the regular paycheck. I've read that contribution overages need to be corrected by April 15 of the following year but it seems like this plan administrator has systems in place to prevent contributing more than $18,000.
I don't see what your confusion is. It is very clear in their statement. Your 1st statement is not any different than theirs. By IRS regulations they are required to stop contributions when the employee deferral limit is reached.
Last edited by Spirit Rider on Fri Jun 16, 2017 10:20 am, edited 1 time in total.

onthecusp
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Re: contribution of more than $18,000 to 401k - no refund?

Post by onthecusp » Fri Jun 16, 2017 10:20 am

KATNYC wrote:"... then we will only take 18,000 ..."

"See prior response."

... what they really mean is $346 won't be accepted at all and just included in the regular paycheck.
a. I think that is the key statement and how my plan works.
b. I think they are unhelpful idiots.
c. I think you got it right. Your final check for the year should have an extra $346 in it.

Dude2
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Dude2 » Fri Jun 16, 2017 10:26 am

Spirit Rider wrote:
KATNYC wrote:There is a percentage contribution system for 401K contributions, not a dollar amount. Because of this system, it's not possible to contribute exactly $18,000 to the 401K for 2017. We inquired about what happens if too much is contributed and the response was:

"What it means is that if your contribution is $18,346 then we will only take 18,000 and there is no refund."
I asked for clarity and the second reply was "See prior response."

What happens to the $346? It doesn't make sense that $346 is not refunded in any way. I suspect the 401K call center is now outsourced (just like our new IT department & new accounting dept) and what they really mean is $346 won't be accepted at all and just included in the regular paycheck. I've read that contribution overages need to be corrected by April 15 of the following year but it seems like this plan administrator has systems in place to prevent contributing more than $18,000.
I don't see what your confusion is. It is very clear in their statement. Your 1st statement is not any different than theirs. By IRS regulations they are required to stop contributions when the employee deferral limit is reached.
If this is the correct interpretation, then they should have phrased it that they will only take $18,000; therefore, there will be no need to issue a refund. Saying "there is no refund", makes a person figure they are going to get ripped off if they cross the line.

Spirit Rider
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Spirit Rider » Fri Jun 16, 2017 10:29 am

Dude2 wrote:What generally happens is that 18,000 is "before tax" and the remainder is "after tax". It goes into the same pot (wherever you are investing it in the 401k), but you actually have to keep track of the amount you contributed "after tax". Are you going to remember this happened in 2017 in 2047 when you retire? So, basically you just eat the tax you paid now, and pay taxes again on the money when you withdraw it in retirement. I'd be surprised if your 401k actually prevented you from contributing "after tax" money. Smart people figure out how to short their contributions (make it total to under 18,000), and then they send a check in December to total it out. It is probably less of a hassle to just short it by a certain amount and not worry about it. Whether you pay the tax now or later, you still pay it eventually.
Define generally. Plans that support after-tax contributions are in the minority anyway and the number of plans that automatically route excess deferrals to after-tax are an even smaller number.

Your statement in bold is not correct. Employee deferrals must be deducted from compensation not already received. A W-2 employee can never make an employee deferral by writing a check.

KATNYC
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Re: contribution of more than $18,000 to 401k - no refund?

Post by KATNYC » Fri Jun 16, 2017 10:30 am

Spirit Rider wrote:
KATNYC wrote:There is a percentage contribution system for 401K contributions, not a dollar amount. Because of this system, it's not possible to contribute exactly $18,000 to the 401K for 2017. We inquired about what happens if too much is contributed and the response was:

"What it means is that if your contribution is $18,346 then we will only take 18,000 and there is no refund."
I asked for clarity and the second reply was "See prior response."

What happens to the $346? It doesn't make sense that $346 is not refunded in any way. I suspect the 401K call center is now outsourced (just like our new IT department & new accounting dept) and what they really mean is $346 won't be accepted at all and just included in the regular paycheck. I've read that contribution overages need to be corrected by April 15 of the following year but it seems like this plan administrator has systems in place to prevent contributing more than $18,000.
I don't see what your confusion is. It is very clear in their statement. Your 1st statement is not any different than theirs. By IRS regulations they are required to stop contributions when the employee deferral limit is reached.
The confusion is because the question wasn't answered to my satisfaction, twice, by the customer service reps for the plan.
It is 100% possible to over contribute to a 401K. There are multiple sources detailing what steps to take when making contributions above $18,000.
I asked for clarity and didn't get it from those in charge of the plan.

Spirit Rider
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Spirit Rider » Fri Jun 16, 2017 10:33 am

Dude2 wrote:If this is the correct interpretation, then they should have phrased it that they will only take $18,000; therefore, there will be no need to issue a refund. Saying "there is no refund", makes a person figure they are going to get ripped off if they cross the line.
Why would they need to clarify this when they already said they would only take the $18,000. If they never took the $436 in the first place how would anyone be getting ripped off.

livesoft
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Re: contribution of more than $18,000 to 401k - no refund?

Post by livesoft » Fri Jun 16, 2017 10:34 am

It is true that you did not get clarity. So keep asking until you do. You may have to ask a different way and multiple ways. This is quite normal and part of interacting with human beings including children.
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Spirit Rider
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Spirit Rider » Fri Jun 16, 2017 10:38 am

KATNYC wrote:The confusion is because the question wasn't answered to my satisfaction, twice, by the customer service reps for the plan.
It is 100% possible to over contribute to a 401K. There are multiple sources detailing what steps to take when making contributions above $18,000. I asked for clarity and didn't get it from those in charge of the plan.
If the company is following IRS regulations it should be 0% possible to over defer to a 401k to a single employer. It should only be 100% possible if you are worked at more than one company during the year.

Would it have been better to say no refund necessary, sure, but "we will only take $18,000 and there will be no refund" is pretty darn clear English.

KATNYC
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Re: contribution of more than $18,000 to 401k - no refund?

Post by KATNYC » Fri Jun 16, 2017 10:39 am

livesoft wrote:It is true that you did not get clarity. So keep asking until you do. You may have to ask a different way and multiple ways. This is quite normal and part of interacting with human beings including children.
I hope our 401K plan administrators are human, albeit I hope not children. :)

Dude2
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Dude2 » Fri Jun 16, 2017 10:39 am

Spirit Rider wrote:Your statement in bold is not correct. Employee deferrals must be deducted from compensation not already received. A W-2 employee can never make an employee deferral by writing a check.
Thank you. I'm sorry. I have never done it myself, but I thought I had read posts of folks doing this.

As far as companies that allow contributing after tax to be in the minority, I'm not so sure that is a correct statement in the sense of how you define the minority. Is it number of companies or total number of people that can/cannot take advantage? All of the gigantic defense contractors I have worked for offer this.

ETA: According to this article, 48% of employer plans allow after tax contributions. http://www.bankrate.com/investing/ira/a ... h-ira-okd/
Last edited by Dude2 on Fri Jun 16, 2017 10:53 am, edited 1 time in total.

Dude2
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Dude2 » Fri Jun 16, 2017 10:42 am

Spirit Rider wrote:
Dude2 wrote:If this is the correct interpretation, then they should have phrased it that they will only take $18,000; therefore, there will be no need to issue a refund. Saying "there is no refund", makes a person figure they are going to get ripped off if they cross the line.
Why would they need to clarify this when they already said they would only take the $18,000. If they never took the $436 in the first place how would anyone be getting ripped off.
Would you not agree that there are subtleties to the English language that are completely overlooked by non native speakers or those that didn't do so well in school?

CantPassAgain
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Re: contribution of more than $18,000 to 401k - no refund?

Post by CantPassAgain » Fri Jun 16, 2017 10:49 am

Spirit Rider wrote:
KATNYC wrote:The confusion is because the question wasn't answered to my satisfaction, twice, by the customer service reps for the plan.
It is 100% possible to over contribute to a 401K. There are multiple sources detailing what steps to take when making contributions above $18,000. I asked for clarity and didn't get it from those in charge of the plan.
If the company is following IRS regulations it should be 0% possible to over defer to a 401k to a single employer. It should only be 100% possible if you are worked at more than one company during the year.

Would it have been better to say no refund necessary, sure, but "we will only take $18,000 and there will be no refund" is pretty darn clear English.
Overcontributions to 401Ks happen all the time. It's not just a case of having two employers in a single year, it's a case of payroll systems being designed and run by human beings. The OP is absolutely correct to seek crystal clear clarity on this issue, because their response is not clear.

"...if your contribution is $18,346 then we will only take 18,000 and there is no refund."

If the contribution is $18,346, and they only took $18,000, where is the $346? And, why wouldn't whoever received the $346 give it back? Those are some of the questions which could be asked.

Sure, one could just guess about what they really meant, and one might be right. But I don't think that's a very good strategy for dealing with the situation. I would make it known that vague, inartfully worded, and borderline rude responses ("see prior response") are not going to cut it.

MindBogler
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Re: contribution of more than $18,000 to 401k - no refund?

Post by MindBogler » Fri Jun 16, 2017 11:08 am

While the statement could have been worded more effectively, I think it is fairly obvious that the response indicates that only $18k would be taken, so no money would be refunded. Is it just me or is everyone in the world more excited than usual? :beer

N10sive
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Re: contribution of more than $18,000 to 401k - no refund?

Post by N10sive » Fri Jun 16, 2017 11:10 am

Spirit Rider wrote:
KATNYC wrote:There is a percentage contribution system for 401K contributions, not a dollar amount. Because of this system, it's not possible to contribute exactly $18,000 to the 401K for 2017. We inquired about what happens if too much is contributed and the response was:

"What it means is that if your contribution is $18,346 then we will only take 18,000 and there is no refund."
I asked for clarity and the second reply was "See prior response."

What happens to the $346? It doesn't make sense that $346 is not refunded in any way. I suspect the 401K call center is now outsourced (just like our new IT department & new accounting dept) and what they really mean is $346 won't be accepted at all and just included in the regular paycheck. I've read that contribution overages need to be corrected by April 15 of the following year but it seems like this plan administrator has systems in place to prevent contributing more than $18,000.
I don't see what your confusion is. It is very clear in their statement. Your 1st statement is not any different than theirs. By IRS regulations they are required to stop contributions when the employee deferral limit is reached.
401k providers keeping track of contributions and employer keeping track of contributions are two different things. Clearly the 401k provider needs to make sure the IRS limit is not breached when one employee works for the same company in a year. I highly doubt the employer will keep track of contributions and limit how much they withdrawal from an employees paycheck.

Say payroll takes out 18,346 the 401k provider only accepts $18k as they should. Well the payroll still has the 346 removed from the employees paycheck. Saying their is no refund implies the employees company will not give back the $346. Or like others have said it could be contributed to a after tax account. This is obviously a valid question and is of concern especially if it is affecting other employees who maybe oblivious to this fact.

N10sive
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Re: contribution of more than $18,000 to 401k - no refund?

Post by N10sive » Fri Jun 16, 2017 11:14 am

MindBogler wrote:While the statement could have been worded more effectively, I think it is fairly obvious that the response indicates that only $18k would be taken, so no money would be refunded. Is it just me or is everyone in the world more excited than usual? :beer
While I think this is true and agree the questions probably could have been worded more effectively, an employer doesn't necessarily keep track of contributions, only a 401k provider will. I change my % contribution two or three times a year and all my HR person does is change the amount taken out of my paycheck. They then have to deposit the money into the 401k provider who keeps tracks of the contribution. I gaurantee if I went over 18k in contributions my payroll wouldn't notice. By law I do not believe HR/Bookkeeping etc who is in charge of 401k contributions will know anything about contribution amount totals etc.

OP didn't necessarily say who the response was from, we can assume the 401k provider. I think a follow up question would be to the OP's HR or accounting to ask about this question.

Ron
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Ron » Fri Jun 16, 2017 11:40 am

Maybe things have changed, but this was a normal situation I had with my employer who's 401(k) was administered by FIDO.

I contributed "above the line" over many years and upon retirement (a decade ago) FIDO did a rollover to an IRA upon my request along with sending me a check for my already taxed contributions. Profits/gains from my "over contribution" were simply held in the rollover IRA and taxes would be paid upon eventual withdrawal.

At the time, I didn't really think about rollover of the taxed contributions to a Roth (if that was possible at the time). Since I had retired at age 59, without any source of income (no pension, no SS) I used the "returned taxable funds" for living expenses the first year(s) of my early retirement.

It was simple for FIDO to break out and separate the two contribution sources.

FWIW,

- Ron

ERISA Stone
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Re: contribution of more than $18,000 to 401k - no refund?

Post by ERISA Stone » Fri Jun 16, 2017 12:30 pm

Dude2 wrote:
Spirit Rider wrote:Your statement in bold is not correct. Employee deferrals must be deducted from compensation not already received. A W-2 employee can never make an employee deferral by writing a check.
Thank you. I'm sorry. I have never done it myself, but I thought I had read posts of folks doing this.

As far as companies that allow contributing after tax to be in the minority, I'm not so sure that is a correct statement in the sense of how you define the minority. Is it number of companies or total number of people that can/cannot take advantage? All of the gigantic defense contractors I have worked for offer this.

ETA: According to this article, 48% of employer plans allow after tax contributions. http://www.bankrate.com/investing/ira/a ... h-ira-okd/
I'm surprised that 48% of plans allow after-tax contributions. Although, since this came from Mercer, I assume they deal with much larger corporations, making it more feasible to allow after-tax contributions. For a lot of mid-size and small businesses it simply does not make sense to offer after-tax contributions because after-tax contributions are tested with matching contributions for nondiscrimination testing. Couple that with the fact that employees who would take advantage of contributing more than $18k to a retirement plan are HCEs, and it would be a disaster for testing.

I'm sure I've mentioned this before. I'm guessing I've had my hands on somewhere between 500-1000 plans, and I've never even seen an after-tax contribution. The reality of this message board is not the reality of the general population.

Marjimmy
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Marjimmy » Fri Jun 16, 2017 1:27 pm

On the next episode of English Grammar....
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

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DaftInvestor
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Re: contribution of more than $18,000 to 401k - no refund?

Post by DaftInvestor » Fri Jun 16, 2017 1:32 pm

Every company I have ever worked for has simply stopped collecting when I hit the maximum as others have stated.
The trick at my current company is they have a small amount of matching but the matching maxes out QUARTERLY so I need to slow down my contributions at times to make sure I am still contributing when I get into the fourth quarter.

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Earl Lemongrab
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Earl Lemongrab » Fri Jun 16, 2017 2:21 pm

Megacorp is one of those that allow after-tax contributions, so your payments automatically switch over when the deferral limit is reached. The also don't do true-up matching, so if you did hit the limit early you'd lose out on matching if you quit at 18k. As the plan also allows rollovers of after-tax, Mega Backdoor is possible. I wish the contribution limit was higher than 30%, but nothing to be done there.
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Re: contribution of more than $18,000 to 401k - no refund?

Post by an_asker » Fri Jun 16, 2017 2:28 pm

Dude2 wrote:[...]Would you not agree that there are subtleties to the English language that are completely overlooked by non native speakers or those that didn't do so well in school?
Or by native speakers who are not so good with their communication skills!! :oops:

Spirit Rider
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Spirit Rider » Fri Jun 16, 2017 2:34 pm

ERISA Stone wrote:
Dude2 wrote:ETA: According to this article, 48% of employer plans allow after tax contributions. http://www.bankrate.com/investing/ira/a ... h-ira-okd/
I'm surprised that 48% of plans allow after-tax contributions. Although, since this came from Mercer, I assume they deal with much larger corporations, making it more feasible to allow after-tax contributions. For a lot of mid-size and small businesses it simply does not make sense to offer after-tax contributions because after-tax contributions are tested with matching contributions for nondiscrimination testing. Couple that with the fact that employees who would take advantage of contributing more than $18k to a retirement plan are HCEs, and it would be a disaster for testing.

I'm sure I've mentioned this before. I'm guessing I've had my hands on somewhere between 500-1000 plans, and I've never even seen an after-tax contribution. The reality of this message board is not the reality of the general population.
I totally agree, Anon-Hewitt is a large recordkeeper of very large plans. As of 12/31/15, they had 6.3% of defined contribution plan assets, but only 0.066% of plans. They only had 551 total plans with an average of 10.4K participants/plan.

On the other hand, Vanguard is a larger recordkeep of large plans. As of 12/31/15, they had 6.6% of defined contribution plan assets, but 0.6% of plans. They had 5,061 total plans with an average of 762 participants/plan.

Plans that allow after-tax contributions are heavily skewed towards the largest plans. That 48% number from Anon Hewitt does not even remotely represent the reality across all plans. There is still relatively few medium and small plans that allow after-tax contributions.

mortfree
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Re: contribution of more than $18,000 to 401k - no refund?

Post by mortfree » Fri Jun 16, 2017 2:42 pm

My 401k has a spillover election. I turn that off.

I also drop my contribution percent for the last pay check of the year so I don't have much overage in that last contribution... I can change my percent the day of or after a paycheck and the change is always applied at the next pay period (every 2 weeks).

If OP has $346 or so extra when they are going to hit 18k, then they should lower the percentage at the last paycheck to avoid this - assuming it doesn't take HR/401k plan too long to adjust the contribution amount.

NancyABQ
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Re: contribution of more than $18,000 to 401k - no refund?

Post by NancyABQ » Fri Jun 16, 2017 2:52 pm

My previous employer -- which had a matching contribution -- would take any over-contribution as after-tax. I think this was probably to allow people to contribute after-tax to get the match.

My current employer doesn't do after-tax, and they don't have a match. I can set the withholding percent to whatever I want, and they automatically quit taking it out of my paycheck when the limit was reached.

In addition, when I switched employers mid-year, the new employer wanted to know exactly how much I had already contributed that year, and then they cut off my contributions when the remaining amount had been contributed.

I agree that the exact details of how it works matter, and the OP is owed a clear explanation by their company.

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JonnyDVM
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Re: contribution of more than $18,000 to 401k - no refund?

Post by JonnyDVM » Fri Jun 16, 2017 2:57 pm

Usually they refund the excess back to you in the next paycheck.
Sometimes the questions are complicated and the answers are simple. -Dr. Seuss

ERISA Stone
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Re: contribution of more than $18,000 to 401k - no refund?

Post by ERISA Stone » Fri Jun 16, 2017 5:16 pm

Spirit Rider wrote:
ERISA Stone wrote:
Dude2 wrote:ETA: According to this article, 48% of employer plans allow after tax contributions. http://www.bankrate.com/investing/ira/a ... h-ira-okd/
I'm surprised that 48% of plans allow after-tax contributions. Although, since this came from Mercer, I assume they deal with much larger corporations, making it more feasible to allow after-tax contributions. For a lot of mid-size and small businesses it simply does not make sense to offer after-tax contributions because after-tax contributions are tested with matching contributions for nondiscrimination testing. Couple that with the fact that employees who would take advantage of contributing more than $18k to a retirement plan are HCEs, and it would be a disaster for testing.

I'm sure I've mentioned this before. I'm guessing I've had my hands on somewhere between 500-1000 plans, and I've never even seen an after-tax contribution. The reality of this message board is not the reality of the general population.
I totally agree, Anon-Hewitt is a large recordkeeper of very large plans. As of 12/31/15, they had 6.3% of defined contribution plan assets, but only 0.066% of plans. They only had 551 total plans with an average of 10.4K participants/plan.

On the other hand, Vanguard is a larger recordkeep of large plans. As of 12/31/15, they had 6.6% of defined contribution plan assets, but 0.6% of plans. They had 5,061 total plans with an average of 762 participants/plan.

Plans that allow after-tax contributions are heavily skewed towards the largest plans. That 48% number from Anon Hewitt does not even remotely represent the reality across all plans. There is still relatively few medium and small plans that allow after-tax contributions.
or even Aon-Hewitt :-). My brain was in another place.

Helo80
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Re: contribution of more than $18,000 to 401k - no refund?

Post by Helo80 » Fri Jun 16, 2017 5:28 pm

haven't read every single response in full, but if this is Aon-Hewitt, they definitely have non-English speakers running CSR chat from my experience. Their management fees for vanguard funds weren't terrible, but I rolled over my 401k from them ASAP as they were getting hundreds of dollars from me for (near) worthless support.

I will say this --- rolling over money from Hewitt was not terribly difficult. Some of the instructions were worded a bit funny and didn't have the needed link to make the instructions clearer for me. But, got them to write a check and send it over to Vanguard on the first attempt.

KATNYC
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Re: contribution of more than $18,000 to 401k - no refund?

Post by KATNYC » Sat Jun 17, 2017 11:10 am

Helo80 wrote:haven't read every single response in full, but if this is Aon-Hewitt, they definitely have non-English speakers running CSR chat from my experience. Their management fees for vanguard funds weren't terrible, but I rolled over my 401k from them ASAP as they were getting hundreds of dollars from me for (near) worthless support.

I will say this --- rolling over money from Hewitt was not terribly difficult. Some of the instructions were worded a bit funny and didn't have the needed link to make the instructions clearer for me. But, got them to write a check and send it over to Vanguard on the first attempt.
Yep, it's Hewitt. We set the contribution to max out and will wait and see what the January check looks like.
There is no after-tax contribution allowed for the plan. If they don't refund the difference (or somehow the overage isn't accounted for), it will open up a can of worms to deal with for 2018.

KATNYC
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Re: contribution of more than $18,000 to 401k - no refund?

Post by KATNYC » Mon Jun 19, 2017 3:07 pm

Finally got a clear response from Aon-Hewitt.

"Hello from Your Benefits Resources (TM).

For example, you have $120.00 coming out of each paycheck and you have currently already contributed for the year $17,999.00. The next payroll deduction will only be $1.00 because anything above 1.00 would put you over the limit."

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