Originally Posted by
ShyGuy
Thanks for the clarification. So the 33k isn’t going to include the retirement contribution, but the 33k does go towards the 306k cap, correct? Essentially hitting the cap sooner and therefore getting more cash over cap?
You really don’t want to hit the salary cap limit without hitting the employee/employer cap first. If you do it stops contributions before hitting the employee/employer limit and your cash over cap is taxed (at a high rate as it’s presumably going to be over 306k or higher in 2023). I’m not 100% on that but you might want to verify with your R and I reps. Personally, I simply bumped my contribution % on normal payroll before receiving retro so that wouldn’t happen.