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Thread: Senate considering eliminating pretax 401k catch-up contribution

  1. #13

    Join Date
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    inland Northwest
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    4,087

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    The only way I've been able to do it was to pay off my mortgage faster by adding extra principal every month for several years. . And having put down $20% in the first place, for 30yr mort. and buying a house that kept me at reasonable mortgage payments when interest rates were 6%+.

    The $ that would have still been going to interest payments is what is going into catchups since the mortgage got paid off. but even then it took a couple years to do max catchup, and cut some impulse spending back as well. and buy a used vehicle I could buy cash or pay off in a year on a 3-year loan on half the purchase value and get that paid off first before paying down principal on the mortgage. Dave Ramsey concepts.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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  3. #14

    Join Date
    Sep 2006
    Location
    Rocky Mountain High
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    6,364

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    Count me as 1.

    Quote Originally Posted by Scout333 View Post
    Would love to know how many TSP'rs are currently utilizing the catch-up contribution provision?
    Weatherweenie's Account Talk
    Expected retirement date: November 2023

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  5. #15

    Join Date
    Sep 2006
    Location
    Rocky Mountain High
    Posts
    6,364

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    It has since been dropped:
    https://www.fedsmith.com/2017/11/16/...nate-tax-bill/

    Quote Originally Posted by StockSurfer View Post
    Workers over age 50 would no longer be able to make catch-up contributions on a pretax basis to their retirement plans under a new amendment to the GOP's Senate version of the tax bill.
    [URL]https://www.cnbc.com/2017/11/13/senate-tax-tweak-would-curb-pretax-401k-catch-up-.html[/URL]

    Weatherweenie's Account Talk
    Expected retirement date: November 2023

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  7. #16

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    Quote Originally Posted by James48843 View Post
    Sucks!

    When this is done, my taxes go up. How about you?


    Sent from my iPhone using TSP Talk Forums
    I'm already retired and I've run through a couple of 1040's under this new plan and my taxes will go up. I live in a state where SALT matters and having had cancer, medical deductions were also pertinent in those years. I've always itemized and that $12k cap, is a pittance. Also, no more personal exemptions. I am concerned as I retired earlier than planned due to cancer and things were not going swimmingly to begin with. Just more salt in the wound, I guess. I'm sure the 2.2% COLA raise this year won't even cover the lack of previous year COLAs despite health insurance premiums going up in every one of those years. If they mess with Medicare, it can only exacerbate things.

    My advice, don't retire. Given our current scenario, you can plan all you want, but the lawmakers can pull the rug out from under any of those plans.

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  9. #17

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    A reasonable compromise on the SALT deduction could be to allow any state and local income tax and/or property taxes up to the House Plan cap of $ 10,000 not just property taxes. Not perfect but better.
    Call your Senators and/or Congressman.

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  11. #18

    Join Date
    Jul 2016
    Location
    Texas
    Posts
    1,935

    Default Re: Senate considering eliminating pretax 401k catch-up contribution

    Quote Originally Posted by kam View Post
    I'm already retired and I've run through a couple of 1040's under this new plan and my taxes will go up. I live in a state where SALT matters and having had cancer, medical deductions were also pertinent in those years. I've always itemized and that $12k cap, is a pittance. Also, no more personal exemptions. I am concerned as I retired earlier than planned due to cancer and things were not going swimmingly to begin with. Just more salt in the wound, I guess. I'm sure the 2.2% COLA raise this year won't even cover the lack of previous year COLAs despite health insurance premiums going up in every one of those years. If they mess with Medicare, it can only exacerbate things.

    My advice, don't retire. Given our current scenario, you can plan all you want, but the lawmakers can pull the rug out from under any of those plans.
    Sorry to hear that you had to retire early due to medical issues. I hope you made it through treatment and are doing well.


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