STORY TIME 2: 1990's and 2000's 401k limits. In-house HR staff

catch22

I worked for one company (10,000 employees) for 32 years. The company, in general; was above average for the time frame, and in particular had a great 'in-house' HR department. Four HR women were only a phone call away and very skilled with all things HR.
I presented them with a 'special' request, which did require other corporate approvals, but they did back me for the request.
At the time, our household incomes were such, that we could both maximize our 401k contributions for a calendar year. We decided to attempt to put our 401K money to work (investing) as soon as possible, if approved, for a calendar year.
Rather than have my 401K monies pulled equally over the full year period; I requested that 50% of my pay go towards the 401K until the fully allowed limit for a calendar year was obtained and than no further contributions for the remainder of the year.
The ladies did a lot of work to verify with all involved that no rules or regulations were being violated and 'my plan' was approved; with the payroll department, etc.
Not so much a big deal, I suppose; but all of my 401K money started 'work' much earlier each calendar year, than was normal.
I don't know that this would be possible today, either by rules and/or regulations; or that many 'HR' departments are no longer in-house at companies.
Remain curious,
Catch

Derf

@catch22 : If memory serves me correctly, union 401-K let members were able to put more into their accounts until limit was hit. It's been a number of years ! Also I believe this 401-k was rolled out from pension. WOW,don't know how that would work today!

catch22

@Derf No union where I worked. 401K and pension plan were their own, separate programs.

hank

I did something similar in ‘98. I was planning on retiring at the end of the school year in June - but was trying to keep it secret as long as possible. But in January I dramatically increased my per-pay deduction so that I’d meet the full ‘98 limit by the end of the school year. I thought it would go unnoticed. But no! I received a call at work from the front office alerting me the amount I’d authorized per-pay would, over a full year, put me over the limit. I assured them I’d stop the deduction in time not exceed the annual limit. While I didn’t tell them I planned to retire, I’m confident ”the cat was out of the bag” at that time. No doubt my chicanery was something they were accustomed to seeing from those preparing to retire. You’d have to be a near idiot not to contribute the full amount in your final year.

There was also a “catch- up” provision back than that allowed you to go over the year’s limit if you hadn’t contributed the full anmount over the past several years. Eventually I took liberal advantage of that as well. I’m pretty sure the catch-up provision is still available today.

catch22

@hank I believe you are correct for certain 'special' provisions for 403's. 401K's had and do have provisions for a 'catch up' for those over age 50 to place more than the normal limit of dollars.