Skip to main content
No. of Recommendations: 0
Question: Does the employer's match count against the $10,500 401k contribution limit?

Thanks
Print the post Back To Top
No. of Recommendations: 0
Bristol79 wrote:

Question: Does the employer's match count against the $10,500 401k contribution limit?

----------------------------------------------------

No, the $10,500 is the limit YOU are allowed to contribute. The thing to be careful of is this: If your employer matches (say 4%) of your contributions monthly and you reach the $10,500 limit in September due to your high contribution rate, you will loose the employers 4% contribution for the remainder of the year. At least that's how it is where I work.
Print the post Back To Top
No. of Recommendations: 0
No, it doesn't count towards the 10,500 annual limit, so crank up that percentage to hit $10.5k per year!

- John
Print the post Back To Top
No. of Recommendations: 0
On a similar note, does anyone know if the 10,500$ limit applies to the 403(b) plan as well? If so are there any disadvantages to reaching that limit in say September or October? My employer doesn't match squat(which bites).
Print the post Back To Top
No. of Recommendations: 0
On a similar note, does anyone know if the 10,500$ limit applies to the 403(b) plan as well? If so are there any disadvantages to reaching that limit in say September or October? My employer doesn't match squat(which bites).

Yes, the same $10.5K limit applies, but the maximum percentage of compensation limit drops from 25% to 20%. As far as reaching that limit early in the year is concerned, as long as you track that limit IMHO it's no disadvantage in doing so.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
I have a 403B and we were told we can only do 15% of our salary (which in my case is under $10,500). ?
Print the post Back To Top
No. of Recommendations: 0
I have a 403B and we were told we can only do 15% of our salary (which in my case is under $10,500).

The maximums in the law are just that--maximums. Employers are not required to offer the maximum.

TMF ExRO
Phil Marti
Print the post Back To Top
No. of Recommendations: 0
<<I have a 403B and we were told we can only do 15% of our salary (which in my case is under $10,500). ?>>

The 20% maximum for a 403b is the legal limit. The plan document implemented by your employer can further reduce that percentage. Evidently, your employer elected to do just that.

Regards..Pixy
Print the post Back To Top
No. of Recommendations: 0
"My employer doesn't match squat(which bites)."

Everything I read on retirement always stresses how wonderful 401's are because employers "usually" put in matching funds. I've had 4 different 401's and not one single employer ever put in a dime.

Which doesn't detract from its tax deferred status, but in the IT industry matching doesn't seem to be happening.

kramer
Print the post Back To Top
No. of Recommendations: 0
403(b)... I put in 25% from each check and have been all year long. I fact they let me put in 40% of my last couple paychecks in 1999. As I said earlier this will put me at 10,500 in Sept. or Oct depending on the OT I get in the meantime.

Was-up? Or maybe you all are saying 20% of gross annual pay?

Clarifications please... thanks in advance.

dslette
Print the post Back To Top
No. of Recommendations: 0
Which doesn't detract from its tax deferred status, but in the IT industry matching doesn't seem to be happening.

Our match bites, too. Get matching only if you buy company stock... Don't want to have THAT much of my 401-k in the company stock! So, I forgo some matching to just keep dumping it in the index fund.

Cindy
Print the post Back To Top
No. of Recommendations: 0
"Which doesn't detract from its tax deferred status, but in the IT industry matching doesn't seem to be happening."

Doesn't the pre IPO stock or stock options make up for the lack of a match? I'd trade my measly match for that. Hmm, how does one define IT industry? Perhaps you'd best look for an established company since they tend to give 401K matching if you really want it.

Why do they have a section 415 limit? That really bites if your employer allows you to contribute a fairly high percentage, but then your contributions get stopped because you reach this limit. I'm no longer subject to this silly rule, but have been for the majority of years that I've worked so far.
Print the post Back To Top