Grand Rapids Business Daily
Maximum 401k Contribution Knowledge Base
Maximum 401K Contribution of $15.5K include company match? or just personal contribution? Does the maximum 401K contribution amount of $15,500 apply only to my personal contribution or does it include what my company contributed (matched)? I've contributed about $10,000 so far this year. My company matched and contributed an additional $5,600. Does the total of $15,600 mean I'm over limit by 100? or can I still contribute another $5,500 in addition to my $10,000?
What is the maximum yearly contribution to 401k plans? The limit for a Traditional 401k is $15,500/year, and the limit for a ROTH 401k is $4000/year. However, this year I put $3000 in my Traditional, and $1500 in my ROTH 401K, and Turbotax says I am over my legal limit. There seems to be a conflict in the tax code, so I must be misunderstanding something. Even my payroller and retirement account company are confused.
Why are annual IRA contribution limits so much lower than 401k contribution limits? It seems odd that those with 401ks are able to contribute so much more annually than those with IRAs. Why are the maximum contributions for each so different?
The IRS allows a maximum annual contribution to 401k plans, with a "catch-up" feature if you're over 50; but tell me, does the dollar amount they set include matching funds from your employer, or is the limit just on what the employee contributes?
How much is maximum contribution for retirement plans? currently I am contributing to my 401k, can I also contribute to Roth IRA, and what is maximum contribution limit for retirement plan?
401k & Simple IRA Maximum-Poss catch-up contribution? My wife & I own a small retail business with one employee & we have a simple IRA plan. My primary job is with another employer with a 401k plan & I have maxed out that contribution for 08 @ 15,500, I am over 50 but did not withhold any catch up contributions. My understanding is that this must be done with salary reduction so it is too late for 08 with the 401K. Since I have reached my maximum IRS allowable deferral amount I don't think I can contribute to the simple IRA as a regular contribution. I did notice the simple allows 2500 for a catch-up, could I designate a 2500 contribution to the simple IRA as a catch-up & get the income reduction?
Does the $5K maximum IRA contribution apply to Roth IRAs only? Does it also apply to employer-sponsored 401Ks? Is there a maximum contribution amount for employer-sponsored 401K plans? Does your total combined IRA contribution for '08 (that's Roth IRA plus 401K) have to be $5,000 or less?
What is the maximum I can contribute to 401k? In tax year 2006, Since I am over 50 years old, I contributed $5,000 to a traditional IRA because I wanted to reduce my taxable income. My 401k contributions brought my income just a little over $50,000 so I was able to reduce my income by most of $5,000. Is there a limiy as to how much I can have my employer deposit into my 401k account? My income will increase a little and want to be able to contribute more so that my 2007 taxes can be reduced by a $5,000 traditional IRA contribution.
Can a person make maximum contributions to a simple IRA and a 401k in the same year? The person works for two employers, one has a 401k, the other has a simple IRA.
Researching 401K rollover to IRA -- IRA info mentions maximum annual contributions. Do I have to contribute? My 401K is substantial, was employed for 12 years. Do I have to make annual contributions to a new IRA, once my rollover is established? Can't the IRA act like a savings account? Is there a minimum contribution amount? I know the max is based on adjusted gross income.
Are contributions to 401k prorated from the time you start work? I have two questions about my employer retirement 401k contributions. 1. The maximum I can put in is $15,500 for 2007. But I started in mid year. Is it prorated from the time I started? Example: I started on July 1, is the contribution $15,500/2 = $7,750. 2. My employer matching is 2:1 up to a maximum of 6% of salary. Example: $50,000 annual salary, employer contribution is $3,000. For every dollar I put in, they will put in $0.50. Is the employer matching of $3,000 included in the $15,500 which means the employee total amount invested is $12,500, or, is it $15,500 from employee plus $3,000 from employer which would equal $18,500. I think it's the former but just want to check. Thanks....
What are some ways to reduce my taxable income other than contributing to a 401k, IRA, and Roth? I don't want to participate in my companies 401k, however I still want to make regular contributions towards and investment for my future as well as reduce my taxable income. Each year I contribute my maximum contributions into my Roth and IRA and will continue. I need an alternative for my 401k contributions. I want more control and transparency.
Roth IRA - 401k Rollover Contribution Limits - will choose best answer? I have a total of three retirement accounts, and I need to make sense of how the maximum contribution limits apply to them. 1) I have a Roth IRA, to which I make the maximum contribution each year. This year I have already deposited the maximum of $5000. 2) Totally separate from that account, I have a small 401k account with a former employer. I have left the employer, and they are forcing me to exit their plan. The balance on this account is only around $600. 3) I just (today) opened a Bank of America Rollover IRA account. I opened this account for the purpose of receiving the funds from account #2, which I am being forced to exit. So the question is: if I rollover the $600 from my old 401K to the new Rollover IRA account, does this affect the contribution limits for my primary IRA account, the Roth? The Roth is my primary vehicle for retirement savings, and I don't want to do anythat that reduces my ability to max it out. (And this year, it's already maxed out). Thanks in advance. I will give 10 points for best answer.
What is the 401K contribution from my employer? Please help me break this down into understandable terms (how much will my company contribute overall?): Contributions: Pre Tax: 1%-20% Maximum $16,500 /yr Catch up contribution: If you are age 50 or older, you can contribute an additional $5,500 to the plan in 2009. Maximum $22,000/yr Employer Contribution: 75% of employee’s contribution (Maximum first 8% of employee’s contribution) Investment Option (Attached): 20 (Currently 12) Vesting Schedule: 1 year (0%) 2 years (25%) 3 years(50%) 4 years (75%) 5 years (100%) New loan fee: $50 one time fee, no annual maintenance fee (Currently $50 one time fee, $25 annual maintenance fee)
Any tax free retirement investments other than 401k, IRA? I started making the maximum contribution to 401k and IRAs for myself and my wife. I also have 529 plans for my kids. Are there any other ways I can invest and avoid paying taxes along the way? I don't want to invest in non-profits or tax free mutual funds that have a low return. Should I just chose a few large cap companies and buy stock directly from them and then just hold on to them for 20 years or so and take the capital gains hit?
Which method is maxing out your 401K? Common advice is to be sure and max out your 401K contribution. Are they referring to the maximum percentage that your employer matches your contribution. Or are they referring to the maximum contribution set by a IRS limit, currently $15K?
401k contributions? I failed to adjust my 2008 401k contribution maximum for the 27 pay periods this year and already missed a pay period before I could change the contribution amount. If I hit the 15,500 at the 26th pay period, will I still get the same matching from the employer as I would if I contributed less per pay period for the 27 pay periods?
How can I correct too large a contribution to my 401K? I worked at two different jobs in 2007 and between the two contributed a few hundred more than the maximum of $15,500. How can I correct this error with the IRS?
I have maxed pretax 401k contributions, should I now add post tax contributions? I am considered a high comp employee so I have a maximum of 8% pretax contribution. What benefit would I have with keeping the 8% pretax and contributing additional funds post tax?
401k contribution too much? The maximum amount for 2008 is $15,500. Because my 401k program does not allow put dollar amount for contribution. I put a %. the contributed amount will be more than $15,500 with next pay check (three days away). will my employer will stop deducting my 401k contribution once it reaches %15,500. or it will continue apply the %. That means I will pay IRS penalty because I will contribute too much. too bad.
IRA 401k Contributions maximums? At my current job I put in 10% of my pay into a 401k and my company matches 6% of my pay. I want to start an IRA account (not roth), I want to know would I be eligible for the tax credit? And if so, what is the deadline for 2006? Thanks
What's the maximum someone can pay into a 401k plan in 2005 including company match? $15k or more? My company matches a portion of my proceeds and I just went over the $15k mark for the year. My question is, can my TOTAL contributions exceed $15k as long as my personal contribution is limited to $15k and the excess is from company matching funds? If yes, what's the limit on the TOTAL contrib including personal and company matching funds? $43k?
Max'd Roth IRA contributions & 401k. Can I contribute to non-deductible IRA, too? I contributed the max $15,000 to my company 401K. With an adjusted AGI $102,880 for Single taxpayer, the IRS spreadsheet indicates a maximum ROTH IRA contribution of $1900 is allowed. My question is whether a non-deductible contribution to traditional IRA in the amonut of $2100 is allowed. This keeps IRA contributions to $4000... is this allowed? thanks, Chaz
Can I still put more into my 401k? My 401k contribution for this year looks like this: Before-Tax $7,748.81 Company Match $7,284.73 Total 2008 Contribution: $15,033.54 Can I still keep contributing even thought the total will go over $15,500 or will I have to stop when the total amount equals $15,500? In other words, is the employer contribution considered in my maximum limit of $15,500?
Does the 401k maximum (2006 - $15,000) include company matched money? For example, I contribute $15,000 of my own money - the company matches X%. My total 2006 contribution is $15,000 + the company match. Although this is greater than $15,000 - have I exceeded the limit?
Employer wants to ditch 401K plan for SEP? - Confused.? Hi, My employer wants to ditch their 401K plan and instead offer a SEP plan, which has a maximum contribution of $10,500 a year. They also toted a 401k SEP plan whereby we all make equal contributions and they would pay my bonus into the plan at the end of the year. I am a little bit confused, since I am not quite sure plan is best for me as an employee. Any feedback much appreciated :) Thanks.
Is maximum roth plus 401k for 2008 $26,500? I am 55 so if I see it right, I can put $15,500 + $5000 catch-up into my 401K and I can contribute $5000 plus $1000 (over 50) to a ROTH. That all comes to $26,500. But I have read that toal contributions to 401k plus roth is $15,500. So what is the deal?
can I arrange to have more than 40% of my income taken out for my 401k? By the end of the year I'll have less the 12,000 for my 401k because I started late. I'd like to max out my 401k but my company is restricting my 401k contribution to a maximum of 40% of my pay check. Is this legal for them to do? I would just need 50% to get to aroud 15,000. I do not qualify for any IRA plans which is why its important for me to max out my 401k.
How much will my employer give me in my 401k if...? What is the most the company will put in considering I max it and if... The company matches half of the first 10% of employee's salary contribution per pay period up to a maximum yearly contribution established by the IRS.
Can you participate in two 401k plans at the same time? I have a full time job where I participate in a 401K and contribute the maximum amount. I also work part time in my wife's sole proprietorship, but dont draw a salary. Can I sign up in the retirement plan in her company, get a salary, and contribute there too. If so, what are the limits, and is the financial advantage of this tax deferral offset by the higher social security tax that has to be paid on my income? Her SS tax is maxed out, so that her extra profit because of my zero salary does not create an extra SS contribution.
Investment Options other than 401K, Roth IRA and Traditional IRA? Here is my dilemna: I make the maximum legal contributions to my 401k, I earn too much to open a Roth IRA, and therefore would not be able to deduct contributions to a Traditional IRA either. What other retirement investments are a good option for me?
Can a person contribute to a traditional 401k a/c and a IRA a/c for the same year? My wife has a traditional 401k a/c which she hasn't reach the maximum allowable contribution amount for the year ($15,000), can she still contribute to a (Roth or traditional) IRA a/c ($4,000) for the same year?
When should I stop contributing the $15K IRS limit to my 401k? I am 32 years old and have been putting the IRS maximum into my 401k for the past 5 years. I am seeing the market value of the account start to really make gains greater than my contributions (last year the market value grew by $30K, I put in my 15) I am wondering if I should lower my contributions and put that same money into a money market account. I want to retire early and fear my nest egg will be huge, but untouchable until I reach age 59.5. Thoughts? Nancy, I agree with you if I planned to work up to the age at which I can take distributions from the 401k. But I want to retire before this date, and any funds in the 401k will be inaccessible until I reach the IRS mandated age of 59,5. I'll need some other form of income in that "transition" period between retirement and age 59.5.
Didn't maximize 2009 401K limit? In 2009, since I needed cash, I didn't maximize my 401K contribution. I have contributed only $6151 and the maximum for 2009 is $15,500. My wife has contributed $0. Is there anything I can do before April 15 to increase my retirement account? I know that I will not be able to get the employer match now. And I do have funds that I can set aside for retirement.
What are my limits on contributing to all the retirement plans available to me combined? I would like to contribute to an IRA, a 401k, a 403b, a SEP plan, a SIMPLE plan, and a Keogh plan, through multiple businesses and employments. So I would like to know what is the maximum contribution using the combination of all of these accounts that I can make per year and which accounts are additive. Thank you.
How can I contribute $25k/year to earn greater than 8%? My employer doesnt offer a 401K plan. I have just opened an IRA and I'm not sure what the maximum contribution amount is over a year. Judging from what I've read, it's definately going to be under $25000. How can I invest my savings to earn the most interest?
Roth IRA and 401k contributions? Hey, I've got a few questions: 1. I've been reading around and still not 100% sure about contributions to a Roth IRA and 401k. The question I have is: can I contribute the maximum to a Roth IRA AND a 401k for the same year? (Assuming I'm within the income limits). It's not like the combination of the two is limited, so $10,000 so I have to split $10,000 between the two. They both have separate maxes right? And I can max out both? 2. What are the tax rates these days? If I bought and sold a stock/option within the same year, what's the tax rate? Is that rate the same for the dividends? 3. What's your opinion, will tax rates be higher in 20- 30- or 40- years time? Thanks!!!!!
Should I have a 401k and an Roth IRA? I currently am contributing 10% annually to my employers 401k. They match my contribution up to 5%, so really I'm putting in 15%. My annual salary is $70,000 a year. I have been thinking about starting an IRA to diversify my tax planning. Thoughts? If I were to open an IRA.. should I bring my 401k down to 5% to get the full match and then put the rest (5%) into an IRA? I intend to keep increasing my contributions until I hit the maximum on either the 401k or IRA. Thoughts? Suggestions? Thanks
What are my retirement combination limits? My company states that the IRS limits the dollar amount an employee can contribute on a combined standard before-tax and Roth 401(k) basis. For calendar year 2008, the limit is $15,500. I believe that means that both 401k and Roth 401k contributions through my employer are limited to $15,500 for the year. Can I contribute the maximum $15,500 and the open an IRA and contribute the $5000 maxium there too? The would be a total of $20,500 per year.
Can I still contribute to an old 401k? My new company allows up to 20% contributions, and matches the first 4%. I don't make enough money to meet the IRS maximum contributions with the 20% limit. I have an old 401k with a little money in it, but not enough to cover roll over fees, so it's not worth bothering with that. Could this old account be contributed to by sending money and deducting it from my taxes? I know I could use a traditional IRA, but the IRA limit is very small. If I could contribute extra funds to the old IRA, I might come closer to meeting the IRS maximum, and maximize my tax savings and retirement security. So, is this possible?
What does this sentence mean in terms of a 401K? "the company matches 25% of employee contributions up to the IRS maximum."
How much can one contribute to a ROTH IRA if they have already contributed to a 401K & can I open a ROTH if? This question is for my husband. He contributes minimally at work $80/week=$4160 a year. I want to open a ROTH IRA for him. I know ROTHS have a yearly limit, this year it's $5000. Does that $5000 include what he has already contributed at work? Or those are separate numbers? Secondly, if anyone knows the answer to this GREAT!!-- I read in a book that says that a homemaker (me) who makes $0/year can still open a ROTH IRA because of my husband and contribute. But I have been getting conflicting info from "regular" people. Someone who knows for sure, please let me know. The book I got my info from is a book of Suze Orman's. Also, if anyone also knows the answer to this: what would my maximum contribution be if I could have a ROTH.
401K withdrawal to pay off credit card debt? In my recent divorce, I was assigned 10K in credit card debt that is in my ex-husband's name at 22% interest. I want to pay this off as the monthly finance fees are almost 200$ alone. I don't have the ready cash to pay it off, I used the loan maximum in my 401K last year to purchase a house and I don't currently qualify for a new account to transfer this loan to a better rate. As I recently purchased my house, a home equity loan is not an option either. I have the money in my 401K but know that there are tax consequences of taking this money out. My 401K in the current market has earned me -13.5% for the year and I'm paying 22% on this credit card. Even with the loss of dollar cost averaging blah, blah, blah would it make more financial sense to transfer the money from the 401K to the credit card? I'm in my mid-30s so have time to recover and also my employer contribution is not a match but a straight 10% of salary deposited so that will continue while I work here Thank you for the comments so far. I'm actually considering a withdrawal, not a loan and as I understand it you can withdraw for any reason as long as you pay the taxes and penalty or pay it back by a certain time. So I'm trying to figure out if I would lose less money paying 22% for the next 10 years on this credit card or less taking it from the 401K. I'm also fully vested in a retirement pension. I've tried to have the interest rate lowered but they won't talk to me since its not in my name. I have to forward a letter with the court agreement and its hard to negotiate that way ya know? He could call and ask but he won't.
Question about 401k? I am reading the details of this one 401k plan. And I do not understand the second part of this this line: "The company will match employee contributions at a rate of 100% of the employee contribution, to a maximum of 4% of eligible compensation." specifically the "4% of eligible compensation" part.
How much can I contribute to a "wife" IRA? I will be maxing out my work 401K and contributions to both my Roth IRA and my wife's Roth IRA, but recently saw an ad that says since she was not working this year I can also set up another nonworking spouse IRA for her. What is the maximum I can contribute to that account?
New job with good income, where to start? I take home approx. 350 weekly direct deposit. I have health, vision, dental and 401k through my company. The 'take home; is after deductions. Also, my job has a bonus structure on top of salary, which from what I can see from other co-workers, runs generally anywhere from $500-1500 paid once monthly. I will not count this toward this just because I have no experience with their bonus structure yet. I have a roommate and bills are easily manageable. My bills (monthly): Rent $300 Utilities etc ~$120 Car insurance $60 Simply put, my main priorities are around $500/mo with roughly $900 left over. Lets subtract $150/mo for gas/oil/whatever etc lets make it $750. I would like to purchase a car in the 10-13k range within a couple years, so saving for that would be one priority. How much should I put away monthly? I'm 22 years old, and I think starting something small on top of the company 401k would be a good idea too, maybe something like $50-75/mo I could contribute to for retirement. I make maximum contributions towards my 401k. %3 matched by employer. Any other suggestions? I have zero student loans and zero credit card debt. I've never made this kind of money before and now that I'm living on my own far far away from my parents, I really don't know what to do. Thanks in advance for any suggestions as to what to do with the remaining funds I have after handling responsibilities.
401Ks and Traditional IRAs? I have already contributed the maximum contribution to my company's 401K account. May I also contribute to a traditional IRA for the same year? Please do not confuse my question with ROTH IRAs. Thank you. Yes, I would like all my contributions to be tax deductable. Otherwise, I would just contribute to a ROTH IRA. Thanks.
Can I contribute $4k each to Traditional & Roth IRAs in same year? I have already contributed $4,000 to my Roth IRA at Vanguard for 2006. I was on the site to make a $1,000 contribution to my Traditional IRA, and the site said I've already made my maximum allowed contributions. I haven't contributed anything to my Traditional Roth this year. I was under the impression I could contribute $4k each to a Roth and a Traditional IRA each year. Am I wrong? A second question. I still have a 401K with a former employer. Can I contribute money into that still?
What should I do with my 401k? I have a dilemma. I am 27 years old and have been contributing 7% of my income plus a 3% match to my 401K for about 1 1/2 years now. I messed up about 3 years ago because I had been contributing to my 401K since I was 19 but cashed it out because I was going through a divorce. What a mistake that was! Either way, I've learned my lesson and am trying to catch up but now with the market and all, I was wondering if I should continue to contribute the same amount and as aggressively as I have been. I am in an aggressive profile with my 401K. I can change it but am unsure whether I should do that because I know that when there is a decline in the market, you buy stock cheaper and that is how you can make money later when the market recuperates. I was also considering raising my contribution half of my raise every year until it reaches the maximum. I know now that it probably will not make up for the $8000.00 that I had in the original (cashed out) 401K but at least it is something. At this point, I am making $61,500.00 a year. If you were in my shoes, what would you do? There was approximately $6300.00 in my 401K before the crash and now there is about $4500.00 in there now. Is there any financial experts out there that would be willing to help me out? Any information would be beneficial. Thanks! I like where this is going....very good responses...but another thing I was wondering is if I should put it into a more moderate conservative account instead of aggressive...or is aggressive the way to make money?
Fired 3 weeks before New Year, employer will not match 401k in Dec 31. Do i have any legal recourse? The 401k plan administrator says "tough luck" because i need to be employed at the end of the year to received the match (as approved by IRS). FYI, i had contributed the maximum allowed for the year ($15,500) by the time i was fired. The plan is 100% vested for both employee contribution and employer match. The match for last year (that i was not given) was 50% of total contribution. Do i have a legitimate complaint? Or are they right in saying "tough luck". Thanks. Thank you all for the responses. I want to believe that this unfair practice should not be a loop hole for employers to "screw" their employees. Besides, what they tell me may or may not be true (regarding the point that i have to employed at the end of the year to receive the match). Can anyone tell me for sure. To "I should be sleeping" - why do you think i have a case?
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