How Much can My Employer Contribute to my 401k?
401k Employer Maximum Contributions
I’d like to clear up a very common 401(k) misconception surrounding maximum contribution limits.
Question: The IRS maximum 401(k) contribution limits for 2009 are $16,500. 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?
Answer: No. The IRS maximum 401(k) contribution is how much you can personally contribute to your 401(k) during the year. Your employer 401K contribution limit is entirely up to them – but the max on total contributions (employee plus employer) to your 401(k) is $49,000 (or 100% of your salary, whichever is less). Technically, this means that your employer could contribute up to $32,500, if they wanted to, and it would not count against your $16,500 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 401(k) contributions this year?
Related Posts:
- IRS Maximum Allowed 401(k) Contributions Increase in 2009
- The Most Common Roth 401(k) Misconception
- Roth IRA Guide
- IRS 401K Maximum Contribution Limits
- 5 Benefits of Using a Traditional IRA
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.
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