The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: MoonShadow on August 11, 2015, 12:22:03 PM
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Is the current limit of $18K against both my contributions & the company match, or is it just against my contributions, and the match is over and above?
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The current limit is $18k of personal, tax deferred contributions. That means if your employer matches up to $6k, you can contribute $18k and have a total annual contribution of $24k.
Also, the maximum contribution limit is $53k/year. Of this, only $18k can be pre-tax. The IRS allows you to convert any post-tax money in your 401(k) into a ROTH-IRA in what's become known as the mega-backdoor ROTH. (http://www.madfientist.com/after-tax-contributions/) If you have the ability, using a mega-backdoor ROTH is an amazing way of goosing your retirement savings and never having to worry about taxes in ER.
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Okay, thanks.