Question

If I didn’t contribute to a 401(k) during 2021, but was eligible to do so, can I do a lump sum contribution? Does it have to be before the end of the year?

Answer

It depends on the provisions of the 401(k) plan, says Denise Appleby, the CEO of Appleby Retirement Consulting.

“A key determining factor is whether the terms of the 401(k) plan allow you to make a salary deferral election now,” she says. “Generally, the election is made during your enrollment period. Some plans do provide multiple windows during the year, and some provide only one window.”

Question

If I didn’t contribute to a 401(k) during 2021, but was eligible to do so, can I do a lump sum contribution? Does it have to be before the end of the year?

Answer

It depends on the provisions of the 401(k) plan, says Denise Appleby, the CEO of Appleby Retirement Consulting.

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