Changing 401k contribution
 

Does anyone know how long it takes for a change on the Schwab website to take affect at payroll? I think payroll closes the 8th or 9th but if the market stays in the tank I’d like to adjust my contribution as high as possible to buy these lows. Looks like you can go up to 60%

It takes effect the next payroll so the Mar 15th payroll

i tried to contribute 100% of my pay when I was on first year pay but the system limits you to 60%. When I called payroll and HR to see about setting it to 100%, HR said the limit was not set by Spirit nor Schwab.

Weird flex, but ok.

next check is paid on the 15th yes, but payroll closes I think around the 8th. So question is when is the latest I can make the change to 60% for it to come out on the 15th check. If the market stays in the toilet the next couple weeks may as well max it out now instead of spread across the year but I’d there is a crazy rally in the next two weeks I’d rather just keep my normal election.

in the big picture it’s not going to matter much but it would be nice to get as much in this year when it’s low

So rather than call HR or Charles Schwab, you ask this on APC? Interesting choice.

Trying to time the market takes big balls, but fortunately our company issued uniform pants have plenty of room for big low hanging balls. Good luck!

i asked a simple question after business hours looking for a quick answer

Fair enough. Too late now, but in the future, many banks have agents working on Central and Pacific time as well, to effectively extend their hours. So even after 5pm Eastern time you might catch them.

Also Spirit HR isn't as hard to reach as our other departments. At least in my experience.

I've heard when 401k first started people would put 100% of their pay into the account. So no taxable income. Then they’d take a loan against the account to live. And there was a way to write off the loan interest. The IRS caught on fairly quickly and limited the contribution amount.

but now there is Roth 401k so you pay taxes on $19k now and withdraw hopefully thousands more in retirement tax free. If using the Roth option 100% would be available I would think. Maybe 60% restriction is precisely to make sure there is enough cash for the tax payment and other deductions. I have know idea actually as is with most things.

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