Author Topic: Question about 401k contributions...  (Read 1097 times)

MoonShadow

  • Magnum Stache
  • ******
  • Posts: 2542
  • Location: Louisville, Ky.
Question about 401k contributions...
« on: August 11, 2015, 12:22:03 PM »
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?

nereo

  • Senior Mustachian
  • ********
  • Posts: 10968
  • Location: Just south of Canada
    • Here's how you can support science today:
Re: Question about 401k contributions...
« Reply #1 on: August 11, 2015, 12:25:45 PM »
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.   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.

MoonShadow

  • Magnum Stache
  • ******
  • Posts: 2542
  • Location: Louisville, Ky.
Re: Question about 401k contributions...
« Reply #2 on: August 11, 2015, 12:27:07 PM »
Okay, thanks.