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    401K limit match

    If company matches first 4%, limit for contribution is 18,500, if your salary was $500,000, and you could match 4%, does that mean that they can only match up to $18,500 so you could have depostited $37,000 per year into your 401K with contribution and match. If you made 1 million dollars could you, could you put in $18,500 pretax and $21,500 after tax, and the business would have to match $50,000. so the contribution was $100,000 that year.

    just not understanding 401k well

    #2
    They’ll match 4% until what you’re contributing reaches $18,500. So if your contribution maxes out ($18,500) in June, they quit putting money in.

    After tax money is typically just on you.

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      #3
      The total of all 401k contributions to an individual's account (combination of salary deferrals, after-tax contributions, employer match and/or profit sharing contributions) is limited to $55,000 ($61,000 if you're 50 or older) in 2018. The compensation cap on calculating employer contributions is $275,000 in 2018.

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        #4
        Most plan administrators will automatically cease deposits at the 18,500 limit, employer match doesn't count towards that limit. As drbonner stated, be careful that you don't hit your limit before the end of the year if you are receiving a match. Unless your company has a true-up feature on your plan, say you contribute 25% of your salary and hit the limit in June, you will lose out of the 4% employer contribution for the remainder of the year.

        *Listen to Shane, he's going to be more knowledgeable when it comes to retirement planning!

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          #5
          so if 18,500 is under the 4% match, then if I put in 18,500 they should match the 18,500

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            #6
            I wouldn't mind having this problem of putting too much into my 401k.

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              #7
              Originally posted by warrington View Post
              so if 18,500 is under the 4% match, then if I put in 18,500 they should match the 18,500
              yes

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                #8
                Originally posted by warrington View Post
                so if 18,500 is under the 4% match, then if I put in 18,500 they should match the 18,500
                worth having a conversation with HR on this one. The employer contribution will never exceed 18,500 unless you have a profit share contribution or something greater than a dollar for dollar match up to X%.

                i don't max mine out although i do get the max employer match though!

                you may also consider roth contributions given that personal tax rates have been lowered now.

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                  #9
                  Which leads me to the question -- how many of you on here make $500k or more ?

                  I cannot imagine ............. wel eye kant evn tipe rite wind eye thank bout fife hunturd thousend a yir .....

                  DWC

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                    #10
                    Originally posted by DWC View Post
                    Which leads me to the question -- how many of you on here make $500k or more ?

                    I cannot imagine ............. wel eye kant evn tipe rite wind eye thank bout fife hunturd thousend a yir .....

                    DWC
                    That would be a good problem to have. And I hope if you make that much money you have a very good cpa that you’re having these conversations with instead of just here

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                      #11
                      For one, I’ll never have to worry about making 500K in a year!


                      And two, I don’t know. I’ve got a finance guy that handles all that crap and he’s good at it. We meet twice a year to go over everything and move stuff where it needs to be moved and that’s it. A small fee too make sure I’m getting the most out of everything I can.

                      Comment


                        #12
                        Originally posted by DWC View Post
                        Which leads me to the question -- how many of you on here make $500k or more ?

                        I cannot imagine ............. wel eye kant evn tipe rite wind eye thank bout fife hunturd thousend a yir .....

                        DWC
                        That question would be for a whole new Thread.
                        I will not be joining that thread though. LOL

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