The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: BlueHouse 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!
-
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 (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits).
-
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 (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits).
Yay! Thanks MDM, I'm updating my spreadsheets now!
-
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 (https://thefinancebuff.com/2017-401k-403b-457-simple-roth-ira-limits.html).