Why does GuidedChoice cap annualized contributions? Why can’t I contribute more to my IRA?
We do this to help you. By law, you are only allowed a specific contribution per year. If you go over, it would be more work on your end to try and course correct. We want to make sure that we can help support you in reaching your financial goals and this is just one way we do it.
If you select a dollar amount higher than the annual $5,500 allowed in an IRA, our system will automatically cap your annualized contributions
If you select an In-Plan and/or Roth 401(k) Savings Rate that allows you to exceed the $17,500 limit (plus, if the plan allows, a $5,500 catch-up contribution for certain individuals aged 50 or over for plan year 2013), the system will automatically cap you at the limit. This way, you won’t have to worry.