Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Magazine

Table: A Midyear Adjustment


Problem: Suppose you earn $120,000 a year and plan to contribute the $11,000 maximum to your 401(k). Either because you're overcontributing or because you got a bonus that you hadn't planned on, you've already put $8,000 in the plan. It looks as if you'll max out in October and miss two months of the company's match. You need to readjust your contribution rate.

Formula:

$3,000 (maximum minus year-to-date contribution)

divided by

5 (Number of months left in the year) = $600 per month

Solution: Reduce your monthly 401(k) contribution to $600, or 6% of pay, to get the plan back on track.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus