Max 401k Contribution from Different Sources/Types

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dlong
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Joined: Wed Nov 30, 2016 8:45 pm

Max 401k Contribution from Different Sources/Types

Post by dlong »

Could you all verify something....

The most that can going into my 401k (2020, under 50 years old) is $57k. This 57k includes:
  • My Contribution (Traditional/Roth), 19.5k limit
  • Company Match (Traditional)
  • Company Bonus (Traditional)
  • My Contribution (After-Tax)
?

I ask because, before today, I thought the $57k was only on My Contribution (traditional/roth/after-tax) and did not include company match/bonus. I am currently maxing out the $57k based on My Contribution (traditional/roth/after-tax) only ...

If the new information is correct, I need to make adjustments to my After-tax so I don't go over... ? *SIGH* :oops:
Flyer24
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Re: Max 401k Contribution from Different Sources/Types

Post by Flyer24 »

The $57k includes the employer contribution.
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dlong
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Re: Max 401k Contribution from Different Sources/Types

Post by dlong »

Thanks for the quick reply. I'll go to my payroll website and make changes...
annu
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Re: Max 401k Contribution from Different Sources/Types

Post by annu »

Not only that, if there is any true up or other retirement contribution from your employer, that will also impact your total amount, I am dealing with that this year
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avp
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Re: Max 401k Contribution from Different Sources/Types

Post by avp »

dlong wrote: Tue Sep 22, 2020 7:12 pm
If the new information is correct, I need to make adjustments to my After-tax so I don't go over... ? *SIGH* :oops:
Does your employer not automatically stop the contributions when it reaches the IRS limit of $57k?
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avp
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Re: Max 401k Contribution from Different Sources/Types

Post by avp »

annu wrote: Tue Sep 22, 2020 8:34 pm Not only that, if there is any true up or other retirement contribution from your employer, that will also impact your total amount, I am dealing with that this year
I am dealing with True-Up for this year. From what I understand, the True-Up will take up space in next year's (~Q1, 2021) 401k space. Reaching the IRS limit of, say, $57k with after-tax contributions this year via front-loading will not negatively impact your ability to get a True-Up. That said, I will not be reducing my after-tax contributions and will continue to aggressively save and max the limit before the end of the year.
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dlong
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Re: Max 401k Contribution from Different Sources/Types

Post by dlong »

avp wrote: Tue Sep 22, 2020 10:29 pm
dlong wrote: Tue Sep 22, 2020 7:12 pm
If the new information is correct, I need to make adjustments to my After-tax so I don't go over... ? *SIGH* :oops:
Does your employer not automatically stop the contributions when it reaches the IRS limit of $57k?
We used to have the True-Up feature but it was removed 2 years ago when they added the After-Tax feature.
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dlong
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Re: Max 401k Contribution from Different Sources/Types

Post by dlong »

avp wrote: Tue Sep 22, 2020 10:29 pm
dlong wrote: Tue Sep 22, 2020 7:12 pm
If the new information is correct, I need to make adjustments to my After-tax so I don't go over... ? *SIGH* :oops:
Does your employer not automatically stop the contributions when it reaches the IRS limit of $57k?
I think they only check and stop the individual Traditional/Roth and do not check the after-tax. It isn't that hard programmatically to write a few logic statements since they already have the one check in place. I did it in Excel.... I had to make a spreadsheet because we lost the True-Up, I have to make sure that I am contributing at least 5% on every paycheck while front-loading.
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