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I think it may depend on the plan. Since it includes a Roth 401k I don't know how that would work. Call the plan administrator for clarification.

When I had a 401k and went over the max amount, it still continued to take out the deduction but on an AFTER tax basis. So while you're still investing in the 401k selections, it is with monies already taxed. Which is why you need to keep track of it so you won't pay taxes on that portion of the 401k when withdrawn/distributed.

Alternatively, you could have the employer stop taking it out when the max is reached and invest that amount on your own with unlimited options as opposed to having to invest in the 401k options only. Depending on what you selected you might save on fees and such.

I let mine ride since it was going into a "stable value fund" and it's probably what I would have put it in on my own (CD's).

When I retired and rolled it over I took the after tax monies as a distribution then.
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