As you can see from the above posts, there are a great deal of misconceptions regarding our 401k. We can have between 1%-25% of pre-tax money and 1%-5% of after-tax money deducted from our check, with a "catch-up" contribution of $5,000 when you reach 50. There is no matching because we receive a pension but UPS does pay the administrative fees. The 401k should be thought of as a long-term savings vehicle, not liquid funds as accessing this money prior to age 59 1/2 ( I always wondered why the 1/2?) subjects you to a 10% withdrawal penalty and 20% Federal tax withholding. There is an annual limit set by the IRS, not UPS, of $15,500 and this usually increases each year. I had not heard of the possible increase to 35% but don't reallly see this as an advantage. I will explain why. Let's assume my weekly gross pay is $1,550. If I have 20% taken out weekly ($310), I would reach the IRS limit in 50 weeks (15500/310=50). The Plan would suspend deductions for my final 2 paychecks of the year. However, if I increase this to 35%, which would equate to $542.50 each week, I would reach the limit in 29 weeks and would have 23 weeks with no contributions, so, in my opinion, the smart thing would be to do the 20% so that it is evenly spread out throughout the year, unless you have the ability to do the 35% and then continue the deduction in to another savings vehicle (IRA, mutual funds, CDs, etc).
The person who started this thread sounds like he is at an age where he should set aside an amount that he is comfortable with, leave it alone, and watch it grow.