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Level 3
posted Nov 10, 2024 11:25:29 PM

403b contribution

Hi,
I am trying to plan next year contribution by front loading max allowance. I plan to work only half year (Jan - June 2025), then travel the world a bit

 

Some relevant information below:
- 50 years
- Residing in Calif
-Single filing taking standard deduction
-Salary 130-135K


So lets say with the Gross of $130K year/12 months is about $10833 a month. If I want to max out my 403b (23500 plus 7500 catch), I would just have something like this below. I want to pay the least tax first 6 months. Does this look right?

Monthly Gross 10833 (130000/12)
Pre-tax deduction -5166 (31000/6months)
------------------
Taxable $5667
=============

Also if I decided to work beyond June, then the subsequent checks will have a larger taxable amount since I already used all the pre-tax deduction? Anything else here I should consider?

I also plan to contribute $8K to the Roth IRA (using money from other account).

Thanks for reading.
TT

0 1 2293
1 Replies
Expert Alumni
Jan 23, 2025 9:27:27 AM

 You can front load up to 100% of your income, if you are unsure about dates. Once it is loaded, your checks will be the full amount. See also Retirement contributions  limit.  The other questions seem to be forecasting which are out of scope for the tax area but it should be perfect in the finances area.