StaggeringMediocrity
StaggeringMediocrity t1_j2edf8h wrote
Reply to comment by Pogingolsen in 401k: Went over the limit by Pogingolsen
Might be worth checking with your payroll department too. Between them and the plan administrator, they should have cut off contributions once you hit your limit. I would ask how they let that happen.
And Happy New Year to you too!
StaggeringMediocrity t1_j2eahfs wrote
Reply to 401k: Went over the limit by Pogingolsen
I would contact your plan administrator ASAP to see if they can fix this. They should not have allowed you to contribute more than your limit for the year. Unless you're 50 or older, in which case the limit is $27,000.
Or is this a case where you had two 401k plans this year? In which case they would have no idea what you contributed to the other.
I believe if the excess is removed by April 15, then there won't be a penalty. The excess will be taxable for 2022, and any gains on that excess amount will be taxable for the year it was removed (2023). And a 1099-R will need to be filled out for the correction. But your plan administrator should be able to help you with that.
StaggeringMediocrity t1_iy9dxhy wrote
Reply to "You'll make more money working 3yrs at a company and then jumping to a new company negotiating a higher salary than just staying at 1 company and taking your annual raises each year" by CasualFridays047
It's unfortunately true that many companies are much more willing to offer money to lure new employees, than they are to incentivize existing employees to stay. Once you're working for them, they figure they don't have to woo you anymore.
So definitely jumping around a lot is a way to increase your salary in a lot of fields today.
The public sector is one of the few places that still functions the old way. You will never get the same pay that you do in the private sector - especially if you're in a highly skilled field - but everything is set up to retain people. There tends to be a more-regular progression in salary, at least to an upper limit. And the pensions are set up to improve as you accumulate service credits, and will often include bumps at certain milestones.
StaggeringMediocrity t1_j6m5gv5 wrote
Reply to comment by majortom300 in I'm considering selling my home, renting for a year, then buying my second home in order to avoid some of the stress of trying to sell and buy at the same time. Is this a bad idea? by youAtExample
What you're thinking of is a 1031 "like-kind exchange" which only applies to investment properties. Investment properties are taxed different from your primary residence or even a second home.
For a qualifying primary residence - where you lived there for 2 of the last 5 years - you automatically get a $250,000 capital gains exclusion, or $500,000 if married.