Author Topic: Go for 2+ 401Ks!!!  (Read 685 times)


  • Walrus Stache
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Go for 2+ 401Ks!!!
« on: April 25, 2018, 06:57:39 PM »
This was a very interesting article.   You can have more than one 401K if you have more than one employer.   Employees have a maximum limit they can put into 401Ks, which can't be gone above regardless of the number of 401ks.

However -- and this is a big However -- Employer match contributions don't work like that.  Each "unrelated" employer is considered a separate bucket for contribution limits.

If each of two employers matched up to 4%, you would make more money by putting 4% into each 401k instead of 8% into one of them.   It's like double free money!

Now, to me, this is where things get interesting.   What if one of my employers is myself?   If my side gig produced enough income I could potentially put tens of thousands more into my personal 401k.   

I'm still researching the employer side of the contributions, but at first glance that looks possible.

I wish I had known that earlier!   

What I specifically want to know is if an employer can put in their max contribution if you just get paid $1 from them for the year.  If not, how close to that optimal situation can we get?

Anyone else interested in helping explore this?

Aunt Petunia

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Re: Go for 2+ 401Ks!!!
« Reply #1 on: April 25, 2018, 07:37:32 PM »
My example isn't as big as these guys but I have a 401a for my side gig that doesn't count towards the 18.5k contribution limit. I contribute 4.5% and they contribute 6%.