What happens if my 401k contributions go over $19,500?

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Most employers/plan just handle this for you automatically and won’t go over the limit. I set mine to 20% and it just stops when it hits the limit, usually with a 2-3 pay checks left in the year. Gives me a nice little holiday “bonus”. You have to be careful with this though because it can lead to you missing out on a match if your employer doesn’t do a “true up” to make sure you got your full annual match.


Better check with your employer. Mine switches to post tax contributions. Extra commissions 1 year taught me that lesson!


Check with your payroll/accounting office. This is one of those things you would think would be easy, but I’ve been burned with excess contributions a few times. I now make a habit of checking my pay stubs in December to monitor that I won’t end up contributing more than the limit. Also, if you don’t get the sense that payroll is on the ball, set you contributions to undershoot by $100 or so.


Being in accounting and payroll, I wouldn’t count on your payroll catching this. Not sure about what happens when you go over in terms of the IRS but I would just be proactive and adjust to save any headache and trouble. And if you end up contributing $19.4k or something, what’s the difference?


My employer auto-converts to post-tax, which i convert to a IRAs at the beginning of each year. Read up on mega-backdoor Roth. I prefer it this way. It also means they maintain their company match. You have to be careful to make sure they don’t drop their match if they auto-stop your contributions.