Author Topic: 401k contribution limit  (Read 1006 times)

kenmoremmm

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401k contribution limit
« on: December 05, 2019, 01:24:26 AM »
i was reading about HCE's (just learned i'll be one this year) and found this article
https://smartasset.com/retirement/401k-highly-compensated-employee
which says
Quote
Before we explore how restrictions may apply to you, letís get to know maximum 401(k) contribution rules that apply to all. For 2018, a 401(k) participant filing single can contribute up to $18,500. Those married filing jointly can contribute up to $19,000. If youíre at least age 50, you can direct an additional $6,000 in ďcatch upĒ contributions. Factor in an employer match and you could be looking at major tax-advantaged savings. But not so fast.

obviously, 2018, not 2019 numbers. but, the thing that jumped out to me was that the contribution limit for MFJ was $500 higher than the individual amount. is this true?

my wife does not have access to a 401k, so am i right in thinking that i could've been contributing an extra $500/yr for the last X years?

AdrianC

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Re: 401k contribution limit
« Reply #1 on: December 05, 2019, 06:30:32 AM »
my wife does not have access to a 401k, so am i right in thinking that i could've been contributing an extra $500/yr for the last X years?
I don't see anything here

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

or here

https://www.investopedia.com/retirement/401k-contribution-limits/

If your wife doesn't work you might still be able to deduct a traditional IRA contribution for her

https://www.irs.gov/publications/p590a

Modified AGI limit for certain married individuals increased. [2019]
If you are married and your spouse is covered by a retirement plan at work and you arenít, and you live with your spouse or file a joint return, your deduction is phased out if your modified AGI is more than $193,000 (up from $189,000 for 2018) but less than $203,000 (up from $199,000 for 2018). If your modified AGI is $203,000 or more, you canít take a deduction for contributions to a traditional IRA.


terran

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Re: 401k contribution limit
« Reply #2 on: December 05, 2019, 06:44:25 AM »
I don't know where they're getting that. 401(k) limits are the same regardless of filing status as they're individual plans.

frugalnacho

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Re: 401k contribution limit
« Reply #3 on: December 11, 2019, 09:22:30 AM »
It looks like the article has already been corrected.  It was probably just a typo on their part.