My electronic paystub for the last 2 weeks in September shows a deduction for a 401a. The dollar amount for the pay period equals the YTD total so am guessing this is a new thing. I don't recall any company emails about this so am puzzled.
Does anyone else see this in their paycheck or know what's up?
btw - am taking the MVO !!
Agree with 4ymm... you can have both 401k & 401a in retirement deductions. I've done it.
In this case, 401a stands for after-tax. 401k is pretax contributions. Once you hit the IRS limit for pre-tax dollars, anything exceeding is taken as after-tax dollars. You paid the taxes on it in your paystub first. The benefit is that anything contributed after-tax grows tax free.
If you dont want to contribute after-tax once you hit the IRS $19k limit, you have to turn that off on Fidelity's website. Or call them up.
If you purposely contribute both pre & after tax contributions all year long, then you can manage on the Fidelity website too.
Finally, AT&T only gives a company match if you make a contribution. Pre-tax, after-tax...doesnt matter. If your contributions stop, then there is nothing to match, and you lose out on free money. So contribution timing is key to maximum savings. Good luck.
Contrary to what someone said, you can have both 401k and 401a at AT&T. If you hit your maximum 401k contribution limit within a year, AT&T will automatically start contributing to a 401a. I confirmed this a prior year (this happened to me too) and more than likely if you are seeing it on your paystub now, it also happened to you in the past as well. Check your December 2018 paystub and you will see the same thing if you maxed out your 401k last year too.
This year the 401k max contribution is 19k. So once you hit that, you will start seeing the 401a on your paystub.
If you never hit the 401k maximum, you will never see 401a.
A good article on 401a and 401k and no you can't have both at once:
https://money.usnews.com/money/retirement/401ks/articles/401-a-vs-401-k-what-is-the-difference
Well if it's after-tax contributions then OP might want to roll it into a Roth IRA for tax-free growth.
401a is the amount for after tax contribution. This means you have met the maximum pretax contribution for your 401k at $19,000. As vzt stated ATT will continue to contribute the company match on after tax contributions for the remainder 2019.
OP are you sure you’re posting to the right forum? 401a plans usually for government or non-profits. It’s either 401a or 401k.
Not on my paystub
401A is a good thing. AT&T continues to take out money and put it into a 401A account after you have already met your 401K dollar amount for the year. Therefore you continue to reap the benefits of a 401K throughout the entire year.