401k ?

Discussion in 'Budget Board' started by mlwear, Apr 19, 2006.

  1. mlwear

    mlwear DIS Veteran

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    This is a dumb ?, but I'm sure someone here will know the answer immediately (giggle at my ignorance, if you want :goodvibes )

    I was just looking at some of our 401K stuff. It says you can contribute up to $15,000 of your pre-tax contribution.
    Here's my question: Does that $15,000 contribution include what the employer matches? Or can the contribution be $15,000 of DH's compensation AND an additional $15,000 that would be an employer match? So, the total going into the 401K would be $30K?
     
  2. pearlieq

    pearlieq <font color=green>They can sit & spin<br><font col

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    You can contribute up to $15,000. The employer match is not taken into account for that limit.

    Keep in mind that most employers cap their matching. It's unlikely they'll match 100% of your contributions up to $15,000. But that sure would be great if they did!!!
     
  3. WeLoveThePoly

    WeLoveThePoly I sense a disquieting metamorphosis .....

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    Yeah, it would be sweet if my company matched 100% of my 401(k) contributions! Unfortunately, they only match 50% of the first $5,000 contributed.

    Debbie
     
  4. mlwear

    mlwear DIS Veteran

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    My example in the question was purely theoretical. Just trying to keep it simple, but should have used numbers that more accurately described a situation. But, it got the point across.
    DH's employer matches 100% up to 4% of his income. I did check and it would be possible to get $15K in matching funds, but you would have to have a salary of $375,000. (I think my math is right, if not I guarantee someone will correct me -- regardless a person would have to have a very high salary to get $15K by matching 4%.
    But, TY pearlieq for your wonderful answer. That is what I was trying to figure out: if it was $15,000 total or just what DH/we contribute.
     

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