How Much can My Employer Contribute to my 401K?
401K Employer Maximum Contributions
I’d like to clear up a very common 401K misconception surrounding maximum contribution limits.
Question: The IRS maximum 401K contribution limit for 2013 is $17,500. But what exactly does this mean? Does this mean that if my employer matches my contribution dollar-for-dollar that I can only contribute half of the maximum ($8,750)?
Answer: No. The IRS maximum 401K contribution is how much you can personally contribute to your 401K during the year. Your employer 401K contribution limit is entirely up to them – but the max on total contributions (employee plus employer) to your 401K in 2013 is $51,000 (or 100% of your salary, whichever is less). Technically, this means that your employer could contribute up to $33,500, if they wanted to, and it would not count against your $17,500 personal contribution maximum .
Employer 401K Maximum Limit Discussion:
- What is your employer’s match?
- Did you think that your maximum contribution was your personal plus your employer’s?
- Are you going to max your 401K contributions this year?
Related Posts:
I am G.E. Miller, & 
1. My employer’s match is 66¢ to my dollar after the first year, before that – nothing
2. I figured it was me only as most employers will state what max they will match
3.I won’t be maxing at this time until debts are paid down more, then I will increase slowly for less notice.
1. 3% flat + 100% match for the first 4% + 50% match for the next 4% => 9% employer contribution for 8% employee contribution
2. Never thought about it, can’t max anyways.
3. Need to get rid of home loans first.
1. Employer contribution is 3% of gross salary no matter what elective contributions are made.
2. No, I knew that the contribution limit is the employee contribution.
3. I will max my contribution this year. Hope to do the same with my fiancee (future wife) in the coming years.
1. 6%
2. Nope, I knew it was just my contribution
3. No, but I’m getting as close as I can right now (25% of my income)
1. 7%
2. that was my contribution
3. I am getting much closer now (33%)
1. 100% up to 6% of salary
2. Nope, I knew it was just my contribution
3. Not this year (single household income and all). I plan to next year.
1. 50% up to 6% of salary
2. just me
3. Yes, although I haven’t worked the whole year so I’m going to have to juggle the percentage withheld a bit.
1. 96 cents on the dollar up to 7% of salary.
.
2. nope, just me.
3. yes, I’m actually contributing more than the 7% match
1. 25 cents for each dollar up to 6%
2. Never thought about this cos I only do 6% and didn’t reach near that ceiling yet
3. No, not yet .. home loan
I get a 200% match up to the IRS max of 16500
No, I knew it was 49,000 for the upper limit
Yes, I am maxing out.
1) Dollar for Dollar. No maximum.
2) No
3) Yes
My employer does 4% automatically no matter if I’m on the plan or not but will match an additional 3% if I decide to contribute 3% for a total of 10%. Last year I saved 17% AGI in my Roth 401k.
My employer has indicated that they can not contribute to my 401k because the average salary in the company is too high. Is there such a IRS rule?
1) $1 from me = $1 from my employer with no maximum! That’s right, if I put in the maximum then they do too.
2) No, because I max out my 401k anytime I can. My employer encourages us to put most of our yearly bonus in 401k to avoid taxes and to double your money.
3) Yes, I don’t max out in monthly contributions but I do max out with my end of year bonus.
Where do you work? Are they hiring?
1) Employer matches 200% up to 5% contribution on first 40k earnings, and 100% match after that. So earning 80k, and 5% employee contribution you end up with 4k employee plus 6k employer for a total of 10k. No company max, just the gov’t limit.
2) Yes I did think/question that, which is how I found this page
3) No, and I never will max it out, I max my separate Roth account and have other investments. The 401k is only one portion of my retirement.
David – good for you that you are investing in your future. If your employer is willing to match your 401K investment dollar for dollar, I highly recommend that you stop investing in your Roth until you’ve maxed out your 401K first. With a 100% match, that is by far the best investment vehicle you will ever find because it immediately gives you a 100% return on your investment. Max that out and take advantage of an uncommonly high employer contribution. If you have anything left over for investing after that you can go back to the roth which is your second best investment choice.