Author Topic: 401k combined contribution limit with catch up  (Read 1088 times)

BlueHouse

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401k combined contribution limit with catch up
« on: October 17, 2016, 08:47:10 AM »
How does the catch up contribution work for combined limits? 

For 2016, the employee limit is $18,000 and the combined limit is $53,000
If I were 50, I would increase my contribution to 24,000.  Would the combined limit be $59,000 or does the combined limit stay at $53,000?

I'm turning 49 next month, which means in January I'll increase my contribution to 401k. Yup, excited about getting closer to 50!

MDM

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Re: 401k combined contribution limit with catch up
« Reply #1 on: October 17, 2016, 09:21:45 AM »
If I were 50, I would increase my contribution to 24,000.  Would the combined limit be $59,000 or does the combined limit stay at $53,000?
$59,000.

See Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits.

BlueHouse

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Re: 401k combined contribution limit with catch up
« Reply #2 on: October 17, 2016, 09:42:42 AM »
If I were 50, I would increase my contribution to 24,000.  Would the combined limit be $59,000 or does the combined limit stay at $53,000?
$59,000.

See Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits.

Yay!  Thanks MDM, I'm updating my spreadsheets now!

bop

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Re: 401k combined contribution limit with catch up
« Reply #3 on: October 17, 2016, 09:59:44 AM »
Also, I believe that the overall limit is projected to go from 53K to 54K in 2017.  Together with the 6K in catchup, that's 60K.  See
https://thefinancebuff.com/2017-401k-403b-457-simple-roth-ira-limits.html.