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401K Lump Sum Contribution
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Carlos Andreas
Dec 7, 2001, 11:50:26 PM12/7/01
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If I enroll in my employer's 401K plan, can I make a lump sum
contribution by check for 10,500, to save on my taxes?
contribution by check for 10,500, to save on my taxes?
Paula in Houston
Dec 10, 2001, 12:46:33 AM12/10/01
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Nope, all contributions to 401K's must be through payroll deduction. You
could however, ask your employer to deduct the equivalent of your last
paycheck(s) of the year (less social security and medicare). If you are
just now enrolling that's not going to help a lot, even if you still have 2
paychecks to go. However, if you don't contribute the maximum to your 401K,
you can still contribute to a traditional IRA, provided you qualify under
the income guidelines. This is what I did when I had a lump of cash after
selling a house.
could however, ask your employer to deduct the equivalent of your last
paycheck(s) of the year (less social security and medicare). If you are
just now enrolling that's not going to help a lot, even if you still have 2
paychecks to go. However, if you don't contribute the maximum to your 401K,
you can still contribute to a traditional IRA, provided you qualify under
the income guidelines. This is what I did when I had a lump of cash after
selling a house.
Paula
"Carlos Andreas" <candr...@yahoo.com> wrote in message
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