Max Retirement Contribution for couples.

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mrx
Posts: 35
Joined: Mon Aug 28, 2017 12:07 am

Max Retirement Contribution for couples.

Post by mrx » Sat Nov 10, 2018 2:53 pm

Hi there,
We are lucky to be able to max out our retirement accounts for the first time this year. As we approach the end of the year I was reviewing our contributions and I came across the following question. I tried Google and forum search but I could not find the answer, I am assuming the question is so trivial that no one has ever asked, but it never hurts to double check.

Basically I want to know if the following case means we are about to overfund our retirement accounts or not?


Max 2018 Contributions: 55,000.
Him: 18,000 401k + 8,400 401k-match + 21,000 Mega Backdoor Roth + 5,500 Backdoor Roth = 52,900 total contributions to his retirement.
Her: 5,500 Backdoor Roth = 5,500 total contributions to her retirement.

Is the 55,000 limit per couple or per individual? If it's per individual, then we will not exceed the max limit (each one of us will contribute less than 55,000 for themselves). However, if it's per couple (52,900+5,500= 58,400) then we will exceed the max limit and maybe we should stop contributing for the rest of the year.

Thank you so much!

ved
Posts: 699
Joined: Sat Jan 18, 2014 6:56 pm

Re: Max Retirement Contribution for couples.

Post by ved » Sat Nov 10, 2018 3:02 pm

You are ok.

The $55k is the maximum per employee into the 401k/ 403b plan.
So, employee contribution + employer matching + after-tax should be less than, or equal to $55k
The IRA contribution (traditional or Roth) does not count in this $55k

edited: typo

retiredjg
Posts: 34168
Joined: Thu Jan 10, 2008 12:56 pm

Re: Max Retirement Contribution for couples.

Post by retiredjg » Sat Nov 10, 2018 3:05 pm

mrx wrote:
Sat Nov 10, 2018 2:53 pm
Is the 55,000 limit per couple or per individual?
Simplified answer....it is $55k per person per 401k type plan. There is a little more to it than that, but does not seem to apply to you.

You are not over the limit, in fact, the $5,500 back door does not even count in your $55k limit for your 401k. And She does not have a limit other than the IRA limit of $5,500.

Bacchus01
Posts: 1924
Joined: Mon Dec 24, 2012 9:35 pm

Re: Max Retirement Contribution for couples.

Post by Bacchus01 » Sun Nov 11, 2018 6:34 am

You can do $18.5k to trad 401k, not $18k.


If you can afford it, do the entire Mega Backdoor ROTH to the fulle amount. Since it’s ROTH, you can always pull contributions out if you are in a pinch, but you can’t add later for the year you missed.

The Wizard
Posts: 12349
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Max Retirement Contribution for couples.

Post by The Wizard » Sun Nov 11, 2018 7:08 am

Bacchus01 wrote:
Sun Nov 11, 2018 6:34 am
You can do $18.5k to trad 401k, not $18k...
That's for 2018.
Next year, the limit goes up to $19k for elective contributions, and $56k for total, including employer and mandatory contributions...
Attempted new signature...

basspond
Posts: 1085
Joined: Wed Nov 27, 2013 4:01 am

Re: Max Retirement Contribution for couples.

Post by basspond » Sun Nov 11, 2018 9:42 am

And don’t forget about the catch up of an additional $6,000 in your 401k if you are 50 or over. Your spouse total if 50 or over total IRA contribution goes to $6,500.

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