My last paycheck from 2023 was dated Friday, 12/29. Every date in the payperiod is within 2023.
I noted my payroll explanation shows the deduction occurring for me in tax year 2023. Today, the 401k provider shows the amount as a 2024 contribution, dated 1/2.
My overall contributions were right at the 22,500 limit for my age group (in fact, capped by the 2023 contributions YTD), but the allocation was applied here to 2024; so I lose some allocation to 2023 and appear to have already used about "one payroll" amount of 2024's limit.
Is it a correct situation that the deduction occurs to me in tax year 2023 and the contribution occurs against the limit in 2024 in line with the date they receive the funds?
Do I have a case to the provider for them to account for this amount as a deduction against 2023 limits?
In the grand scheme losing one payroll from my limit isn't a huge deal, but it's obnoxious given I planned to the limit (with no apparent way to have perfectly arranged it given the payroll system applied 2023 YTD calculation), and it'll happen in maybe 4 out of 14 years where the biweekly payroll is just so close to New Years Day where I catch this spread between pay date and the receipt by the provider.
My search found this written by Investopedia: "But the tax deductions for 401(k) plan contributions and most other salary-deferral retirement plans usually apply only to the calendar year in which they are actually withheld from the taxpayer's paycheck." with a citation to this IRS page that is precise in stating that deferrals are not subject to withholding at time of deferral, and says nothing about which year the deferral is counted. Is there an IRS or other government source that clarifies if this is correct?
