Author Topic: Contribute more than $18K to two separate 401k's in 2015  (Read 1978 times)

Indio

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Contribute more than $18K to two separate 401k's in 2015
« on: March 29, 2015, 10:12:49 AM »
At my current job, I have contributed almost $9k into the Fidelity managed 401k. Now I'm considering switching jobs within the next two months and I'm wondering if there is annual limit on contributing to two separate 401k's. This will not be simultaneous contributions as I will have transferred to the new company.
I know there is an annual max for my current 401k of $18k but if I switch jobs will I be able to max that account out also?
So at my current job, does it make sense to put as much money into it to get as close to the $18k limit as possible and then at the new job will I be able to contribute the annual max of $18k in the fidelity managed 401k at the new company? This would bring me to almost $36K in 401k contirbutions for 2015. Are there restrictions that I am unaware of?

Joel

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Re: Contribute more than $18K to two separate 401k's in 2015
« Reply #1 on: March 29, 2015, 10:25:05 AM »
I'm pretty sure you can only do 18k total, although I have wondered the mechanics of making sure you contribute the exact amount allowed when switching job. Posting to see what other people have to say.

seattlecyclone

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Re: Contribute more than $18K to two separate 401k's in 2015
« Reply #2 on: March 29, 2015, 11:24:21 AM »
Yes, the $18k limit is a total for all 401(k) and 403(b) accounts that you might be able to contribute to throughout the year.

In your situation, make sure to get the maximum match from both plans. You may want to contribute a bit more to your current one if possible because you can always roll that over to an IRA and invest in whatever you want.

GeorgiaCPA

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Re: Contribute more than $18K to two separate 401k's in 2015
« Reply #3 on: March 29, 2015, 11:36:33 AM »
As Seattle noted - the limit is per the individual not the plan.  Make excess contributions to achieve the max and after December 31 let your plan administrator know how much you have over-contributed to the plan.

http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-401k-and-Profit-Sharing-Plan-Contribution-Limits

dandarc

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Re: Contribute more than $18K to two separate 401k's in 2015
« Reply #4 on: March 29, 2015, 11:41:35 AM »
http://whitecoatinvestor.com/multiple-401k-rules/

While the 18K limit applies to all 401K and 403B plans for you.  The 53K limit is per employer - hopefully both of your employers are generous and make a large deposit into 401Ks regardless of your deposit!