What's the maximum that an employer can contribute to the 401k?

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ig77
Posts: 23
Joined: Fri Dec 22, 2017 9:46 am

What's the maximum that an employer can contribute to the 401k?

Post by ig77 » Fri Nov 08, 2019 1:32 pm

I work for my own S-Corp and have a Solo 401K with Vanguard. As an employee, I have contributed $19000 this year.

I'd like to put away as much as possible in the 401k. As an employer, what's the maximum I can contribute? I've read that the total employee + employer contribution should not exceed $53000, but I've also read that the employer contribution cannot be more than 25% of the employee salary.

Silk McCue
Posts: 3240
Joined: Thu Feb 25, 2016 7:11 pm

Re: What's the maximum that an employer can contribute to the 401k?

Post by Silk McCue » Fri Nov 08, 2019 5:12 pm

ig77 wrote:
Fri Nov 08, 2019 1:32 pm
I work for my own S-Corp and have a Solo 401K with Vanguard. As an employee, I have contributed $19000 this year.

I'd like to put away as much as possible in the 401k. As an employer, what's the maximum I can contribute? I've read that the total employee + employer contribution should not exceed $53000, but I've also read that the employer contribution cannot be more than 25% of the employee salary.
Horses mouth right here.

https://www.irs.gov/retirement-plans/on ... 401k-plans

Cheers

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