Originally Posted by higney85

Assuming you are in the MBCBP camp (meaning you did not go through the steps to keep excess/excess plus) think of the 401K this way:

The 401K "bucket" will first be filled by:

Company Contributions (17% in 2024)
Elective contributions (Traditional 401K, Roth 401K)
401A contributions

That 401K "bucket" can hold a max of $69,000. Catch up contributions are always on top and seperate, if over 50 in 2024 or beyond. Once that 401K bucket is full, OR your income hits above $345K (401a17) , any excess (now only company money) goes to the MBCBP. So, if you have retirement as a personal 4th pillar (read the tongue in cheek), the goal would be to put YOUR contributions in for max effect before the company has to fill the MBCBP sooner. Remember, MBCBP money is ONLY company money. So fill up your personal limits first (Traditional or Roth, or combo of both) to the $23,000 before the bucket is filled by the 17% also inflowing.

Personal strategy *Disclaimer- Not Financial Advice* for ROTH money is to NOT contribute at all to the ROTH 401K or Traditional; instead contribute all of the contirbutions to the 401A and call Fidelity the first time to have all conversions immediatly converted to ROTH. 401A contributions are AFTER TAX to begin with, and now they are ROTH. This bypasses the $23,000 402G limit and allows the maximum amount of 401K dollars to get into there as ROTH before the 415c1A limit of $69,000.

Fill the 401K pot faster than the company and the rest goes to MBCBP. A good PS check can really help to do that without tying up all the income for the first few months of the 2024 payroll cycle. If over 59.5YO, you can also do in plan conversions once a year to the 401K from the MBCBP (without messing with the 415 limit) and invest differently than the MBCBP 60/40 Fixed/Equity mix if more risk is wanted/warranted. *Disclaimer end*

Filling up the 401K pot quickly and having lots of MBCBP money is not a bad problem to have. If nothing else it frees up contribution money for after tax investing/saving.