Question about 401K, and contribution limits

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Basic Limits for 2019 The basic employee contribution limit for 2019 is $19,000, up from $18,500 in 2018. The $19,000 limit includes all elective employee salary deferrals, as well as any after-tax contributions made to a designated Roth account within your 401(k). The same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan.

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If you have multiple 401(k) accounts, your total contributions to all of them—both traditional and Roth—cannot exceed that $19,000 limit. Any contributions you make to other types of retirement accounts, such as IRAs, do not affect your 401(k) contribution limit. To encourage workers nearing retirement to speed up their saving, the IRS allows 401(k) participants ages 50 and over to make additional contributions beyond the standard contribution limit. If you are 50 or older, you can kick in an extra $6,000 catch-up contribution, for a total of $25,000. The $6,000 catch-up figure is unchanged from 2018. Employer Contributions Another big benefit of participating in a 401(k) plan is that your employer may contribute to it, as well. Many employers match employee contributions by adding, for example, 50 cents or $1 for every dollar the employee contributes. Employers can also make elective contributions regardless of how much or little the employee contributes, up to certain limits. The general limit on total employer and employee contributions for 2019 is $56,000, or 100% of employee compensation, whichever is lower. For workers 50 and up, the limit is $62,000 ($56,000 plus the $6,000 catch-up contribution).

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