Can’t add to my 401k… is this normal?

General
21

Ocean said:
Maybe update your W4 so less is withheld from your paycheck. Then you can contribute to the 401k and pay taxes quarterly.

My hourly pay doesn’t even cover FICA, so no federal taxes are withheld. I already make quarterly payments to handle taxes.

22

I found a similar discussion here.

23

Harley said:
I found a similar discussion here.

Thanks, that’s exactly my issue. Sadly, it doesn’t look like there’s a solution.

24

@Christopher
The only real fix is to work somewhere that lets you contribute. Otherwise, invest your cash in a brokerage account. You won’t get the tax benefits, but it’s still a way to grow your savings.

25

Can you share your actual paycheck details? It might help people come up with ideas.

26

Darian said:
Can you share your actual paycheck details? It might help people come up with ideas.

Here’s an example. My tips are claimed for taxes, but since they’re paid in cash, my paycheck ends up being $0.

27

FICA taxes apply to everyone. Some plans let you contribute up to 100% of your paycheck. If yours allows it, you could invest your $2.13/hour, but you’d likely end up owing money to your employer.

28

Ari said:
FICA taxes apply to everyone. Some plans let you contribute up to 100% of your paycheck. If yours allows it, you could invest your $2.13/hour, but you’d likely end up owing money to your employer.

My claimed tips are high enough that even my hourly pay doesn’t cover FICA. That’s why I don’t have anything left to contribute.

29

Try adjusting your W4 to reduce withholding. Then use the extra to contribute to the 401k and make quarterly tax payments.

30

Payton said:
Try adjusting your W4 to reduce withholding. Then use the extra to contribute to the 401k and make quarterly tax payments.

There’s nothing to reduce because my hourly pay doesn’t even cover FICA. I already handle taxes quarterly.