Hi Everyone,
I'm swamped and just got an email from my son. I know there's been a lot of posts on plans that allow after tax contributions but I don't have time to research them out. Can anyone help in getting off an answer to him?
"So with the new benefits package, Blank Company is doing a company match on contributions to our 401k. One of the new statements is "Employees may elect to contribute from 1%-25% of their base pay on a pretax and/or after-tax basis (combined not to exceed 25%) to the fund up to annual IRS limits. The company matches 50% of the first 8% of base pay the employee contributes each pay period."
So for someone like me, who is contributing 24% of my monthly pay for an annual total of 18240, what does that mean? Can I adjust my contributions down with the match from company to hit the 17.5k limit?"
I know he can't go over the 17,500 limit for his 401k but not sure about the after tax stuff.