Comments on: Does the 401(k) max contribution limit include the employer match? http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/ Because wealth is better than poverty, if only for financial reasons. Tue, 07 Sep 2010 17:06:02 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Clint http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/comment-page-1/#comment-66014 Clint Sat, 04 Sep 2010 23:01:54 +0000 http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/#comment-66014 Really? I'm not sure I know how to explain it any better. You can contribute a maximum of $15,500 of your own money. That is your limit. $15,500. Your own money. $15,500. Your contribution max. Are we clear on that part? That's really all you need to worry about. Your employer can contribute additional money. Enough to get the total (employer contributions + your contributions) up to $46,000, but the amount that your employer contributes has no effect on the $15,500 you can contribute. Once again, to try to be clear, if you add $15,500, and your employer adds an additional $30,500 (as unlikely as that is), you are still within your limits. Really? I’m not sure I know how to explain it any better. You can contribute a maximum of $15,500 of your own money. That is your limit. $15,500. Your own money. $15,500. Your contribution max. Are we clear on that part? That’s really all you need to worry about.

Your employer can contribute additional money. Enough to get the total (employer contributions + your contributions) up to $46,000, but the amount that your employer contributes has no effect on the $15,500 you can contribute.

Once again, to try to be clear, if you add $15,500, and your employer adds an additional $30,500 (as unlikely as that is), you are still within your limits.

]]> By: confused http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/comment-page-1/#comment-66010 confused Sat, 04 Sep 2010 22:29:42 +0000 http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/#comment-66010 I still can't determine the answer from this article. Does the individual get to contribute up to t he limit, or does the individual have to artificially contribute less because the company will match some? I still can’t determine the answer from this article. Does the individual get to contribute up to t he limit, or does the individual have to artificially contribute less because the company will match some?

]]> By: Clint http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/comment-page-1/#comment-64409 Clint Fri, 18 Jun 2010 00:05:13 +0000 http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/#comment-64409 Adam, I'm not sure what you mean. How the two interact is specifically highlighted in bold in the article: "The total amount that can be contributed between employee and employer contributions is ... the lesser of 100% of the employees compensation or $45,000 for 2007, and $46,000 for 2008." At the time of this writing, the max you could contribute as an individual was $15,500 (as stated in the article ). You employer could add contributions that get the total amount up to the lesser of $45,000 or 100% of your total compensation. The original question came from people that knew about the $15,500 limit, but didn't know if that included their employer match contributions. I think the article answers the question, but to be super clear, the answer is that it does not. Adam, I’m not sure what you mean. How the two interact is specifically highlighted in bold in the article:

“The total amount that can be contributed between employee and employer contributions is … the lesser of 100% of the employees compensation or $45,000 for 2007, and $46,000 for 2008.”

At the time of this writing, the max you could contribute as an individual was $15,500 (as stated in the article ). You employer could add contributions that get the total amount up to the lesser of $45,000 or 100% of your total compensation.

The original question came from people that knew about the $15,500 limit, but didn’t know if that included their employer match contributions. I think the article answers the question, but to be super clear, the answer is that it does not.

]]> By: Adam http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/comment-page-1/#comment-64373 Adam Tue, 15 Jun 2010 12:06:04 +0000 http://www.accumulatingmoney.com/does-the-401k-max-contribution-limit-include-the-employer-match/#comment-64373 I wish this answered the question more clearly. You explain what the yearly limit is and what the employer contribution limit is, but not whether the two interact, which was the question you asked in the first place. So I'm still confused about the answer. I wish this answered the question more clearly. You explain what the yearly limit is and what the employer contribution limit is, but not whether the two interact, which was the question you asked in the first place. So I’m still confused about the answer.

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