Sorry for the irrelevant post. Wondering if when bonuses are paid out if I was contributing 15% to 401k would 15% of the bonus go into my 401k?
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The bonus targets were slashed in risk
This thread is vivid proof of the bloated compensation/bonus structure that exists at WF. 50-90% bonuses. Seriously?
If it were slashed, WF would get their desired attrition virtually overnight.
Please DO IT, so top'performing staff don't have to needlessly lose their jobs.
Yes, 15% of that check would go in your 401k, including 15% of your base salary.
Don’t think so, my boss is on a 90% target. We are all in CIB.
@aja you must not be great at match. I have maxed out my 401k by March every year I have been here and have never made more than 400k all in.
I'm the one that maxes out by March. I just set the contribution rate to 50% until it's maxed.
Interesting... the max 401k contribution is 19500 per year. This does not include the employer match.
So we have a poster here who puts away 19500 by March.
So that’s an absurdly giant deferral on a big salary, a giant salary of at least half a million, or I don’t know what else.
For the March 2021 bonus, you won't need to sweat as there will (most likely) not be a bonus payout.
@ucb+16e05RhB that is correct but you need to be careful if you are a new employee and your matching benefit has not vested. Say you max out 401k in Q1 but match does not vest until Q3. You are out of luck on your match for Q3 and Q4.
Once you hit your contribution limit the system won't let you go over. I always hit my annual limit after the March bonus payment. Note: if you max out early in the year you still get the end-of-quarter matches throughout the rest of the year.
yes, if your auto deduction is set at 15%; it would take 15% into your 401k (as long as you haven't maxed out the max contribution for the year which would be unlikely in March). The limits are for the tax year it's paid out in (ie a 2019 bonus paid in march 2020 is towards your 2020 401k limits). You can also choose to lower your 401k contribution 1-2 pay periods prior to bonus pay out if you don't want to have that much taken from the bonus.
Thanks. So if bonuses are paid out in March do they count towards contribution limits for the previous year or the current year? And if it pushes you over the contribution limit can you contact the plan and have them apply it to the current year instead?
It does. You can change your contribution percentage prior to the payroll processing for your bonus if you want to contribute at a higher or lower percentage for your bonus.