Originally Posted by
boog123
Odd question, any of you folks put part of profit sharing into your 401k last year? I am curious at to the "header" that the payment was put under. i.e., was it just added to your own 401K payments in the left column or was there a special line added in the left part of the paycheck for a "one time" deposit?
If there was a special line, what was it titled? Thanks.
I put all of it into the 401k. (Actually 90%. Gotta leave roughly 10% for social security taxes or they whack your next regular check. Ask me how I know)
There is no special header on your pay statement. It is an ordinary 401k contribution. Of course, depending on how much that contribution works out to, it can pretty much max out your 401k limit for the year.
The logic for filling the 401 early in the year is getting that money to work sooner and getting the tax advantage on the investment returns earlier.