Originally Posted by
CAVOK84
I may be missing something. Assuming a pilot contributes the max allowed to the 401K, a $500 match and an 8% contribution to the limit of $280,000-- how are we likely to reach the IRS annual limit of $56,000?
Is extra sick pay contribution the only means by which this might occur? If this is in fact the issue, how would receiving a sick pay contribution at end of year elicit lost contribution?
You can and should use your After-Tax sub-account to reach $56,000. Up to 20% of each check can be socked away here, where it can start generating tax-free earnings for your retirement. The great thing Fidelity offers now that Vanguard did not is the auto-sweep from after-tax into your Roth 401k each paycheck. This minimizes taxes on gains and eliminates calling in to speak to a representative.