Originally Posted by
tom11011
Retirement will need a close look as the max 401k total contribution allowed is $18,000 annually. This is why companies have both 401k and pension as to not loose the benefit of a company contribution.
For example, if you make 200,000 in 2016 and you are withholding 10%, you are already over the 401k limit before the company matched one dime.
This is incorrect. $18,000 is the max THE EMPLOYEE can contribute each year. The company match is not included in that limit, but the combined total cannot be more than $53,000 in a year.
If you're making $200,000 per year, you could elect to contribute 10% each pay period, but once you reach the $18,000 limit you will automatically stop contributing to your 401k for the year. The company match is in addition to that amount. Some people elect to do this so that they have larger paychecks in November and December, around the holidays.
If your company does not offer a true up, you don't want to reach $18,000 until the last pay period of the year because you will lose the company match for those paychecks. As of about 2 years ago, I believe Allegiant's 401k plan does offer the true up feature.
If you have been trying to put no more than $18,000 total in your 401k each year INCLUDING the company match, then you have been missing out on a lot of money that you could have been contributing.