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Is the $18,500 cap for 401K eapplicable to employer matching?
Posted on 6/19/15 at 3:35 pm
Posted on 6/19/15 at 3:35 pm
Or does it apply to the individual's contribution only?
I get half matching to 10. So let's say I make $150k and put $15,000 into my 401k. That would put my total at $22,500. Would I have to pay taxes on the $4000 excess of $18,500?
I get half matching to 10. So let's say I make $150k and put $15,000 into my 401k. That would put my total at $22,500. Would I have to pay taxes on the $4000 excess of $18,500?
Posted on 6/19/15 at 3:40 pm to mule74
The $18,000 cap is the max amount you can contribute. The match does not count towards your cap, it has a seperate cap.
EDIT: $18,000, not $18,500.
EDIT: $18,000, not $18,500.
This post was edited on 6/21/15 at 8:51 pm
Posted on 6/19/15 at 3:40 pm to mule74
It's my understanding that the deferral limit for 2015 is 18k of YOUR contributions. Total limits (including employer match) is 53k. Depending on your age (over 50) there is also an employee catch up contribution of 6k in 2015.
Posted on 6/19/15 at 3:42 pm to mule74
$18,000 cap is for individual contributions.
$53k, combined cap
$53k, combined cap
Posted on 6/19/15 at 6:35 pm to LazyDaveD
quote:
The $18,500 cap is the max amount you can contribute. The match does not count towards your cap, it has a seperate cap.
Posted on 6/19/15 at 6:52 pm to Oenophile Brah
quote:
$53k, combined cap
Ya, I'd probably do whatever I wanted outside of work if they were filling my 401k up to the limit.
Probably turn into a real snooty SOB
This post was edited on 6/19/15 at 6:52 pm
Posted on 6/19/15 at 8:15 pm to Teddy Ruxpin
I get employer matching up to 6%
That good?
That good?
Posted on 6/19/15 at 8:36 pm to cjared036
Also note that if you're considered a highly compensated employee (HCE) you limit may be lower. Not sure how to find out normally, but voya informed me through there system when my fiance got close to her limit. She maxes out at like 14k.
Posted on 6/19/15 at 11:21 pm to cjared036
quote:
I get employer matching up to 6%
That good?
If it's 100% match up to 6% then that's fairly good. On average I'd say most companies match less that. My company matches 6% plus an optional 0-4% based on company performance. It used to be just 4%, but then they froze the pension plan.
The last 3 years we've gotten an extra 2% for a total of 8% match per year which is very nice.
This post was edited on 6/20/15 at 11:49 pm
Posted on 6/20/15 at 12:11 am to gpburdell
quote:
If it's 100% match up to 6% then that's fairly good. On average I'd say most companies match less that. My company matches 6% plus an optional 0-4% based on company performance. It used to be just 4%, but then they froze then pension plan.
Ya, I'm 100% to 3% and then 50% to 5%.
So basically, 4% I suppose.
Posted on 6/20/15 at 5:47 am to mule74
followup question. Say I am on pace to contribute more than $18,500 this year. Will my employer automatically stop withdrawing from my paycheck, or do I need to change my withdrawal %?
Also just for another data point, my company matches 100% up to 5%. But they also contribute another 5% (based on my years of service) without needing me to contribute. So, if I put up 5%, my 401k really gets 15%. I think this is pretty good, but we don't have any kind of pension or other retirement savings vehicle.
Also just for another data point, my company matches 100% up to 5%. But they also contribute another 5% (based on my years of service) without needing me to contribute. So, if I put up 5%, my 401k really gets 15%. I think this is pretty good, but we don't have any kind of pension or other retirement savings vehicle.
Posted on 6/20/15 at 6:52 am to Spirit of Dunson
They should stop at the limit
Posted on 6/21/15 at 9:20 am to Spirit of Dunson
if your over the age of 50 don't you have another $5000 that you can contribute? i learned recently that our company 401k thru fidelity doesn't have a max contribution limit, only limited thru what irs says you can contribute - i hope this makes sense. I have adjusted my contibution to 18%. fwiw
Posted on 6/21/15 at 9:45 am to Gorilla Ball
Not sure. I'm only 36. My company uses fidelity to mamage our 401ks as well.
Posted on 6/21/15 at 10:16 am to Gorilla Ball
It's called catch up contributions and its 5,500
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