It’s Open Enrollment time at my company and I’m trying understand the details for the 401K plan
For 2024
* The 401(k) contribution limit is $23,000.
* The 401(k) catch-up contribution limit is $7,500 for those 50 and older.
So the total that I can contribute is $30,500 which I understand.
From the Company Benefits documentation
* Company will automatically contribute an amount equal to 3% of your eligible pay to your account
* Company automatic contributions and any potential match stop when your total eligible pay for the year reaches IRS limits
That last bullet confuses me. Does that mean the company 3% match are included in the $30,500 or is it in addition to my individual contribution
>That last bullet confuses me. Does that mean the company 3% match are included in the $30,500 or is it in addition to my individual contribution
There are several limits related to 401ks.
$23k + catch-up is the employee limit (I’m skipping the nuance of MBDRs for simplicity).
There’s also a limit for the sum of employEE + employER contributions. For 2023 it’s $66k; it’s higher for 2024 but I haven’t committed that number to memory yet. π [edit: it’s $69k for 2024]
And the eligible pay limit the bullet refers to is ~$300k [edit:$345k in 2024], you don’t get 3% of infinite salary contributed by the employer.
Since your plan is a Safe Harbor plan with a Non-Elective contribution, you’ll get 3% of your salary (assuming salary <$300k) whether you put in $0 or $30,500. And you can put in up to $30,500 of your money on top of that.
There is a cap on how much “100%” means for eligible compensation, known as the “401(a)(17) limit” or the “404(l) limit”. Only the first $330k (2023) or $345k (2024) counts as 100%. So a “3% match” is based on compensation up to this cap, even if someone might be making $1 million a year.
Same goes for the % you enter into the election form. If someone making $1 million wants to max out their 401k, they enter $23000 / $345000 = 7%, not $23000 / $1000000 = 3%.
Company match is not included.
The $30,500 is from your pocket.
If you put in $30,500 today, the company would match 3% of your eligible pay.
If you make $100,000 you get $3000.
Your total should be $33,500
ΠΡΠ΅Π΄ΡΡΠ°Π²Π»ΡΠ΅ΠΌ Π±ΡΡΡΡΡΠΉ ΠΈ ΡΡΡΠ΅ΠΊΡΠΈΠ²Π½ΡΠΉ ΠΌΠ΅ΡΠΎΠ΄ Π΄Π»Ρ “ΡΠ±ΠΈΠΉΡΡΠ²Π°” ΠΎΠ½Π»Π°ΠΉΠ½-ΡΠ΅ΡΡΡΡΠ° ΠΌΠΎΡΠ΅Π½Π½ΠΈΠΊΠ° ΠΈΠ»ΠΈ ΠΊΠΈΠ΄Π°Π»Ρ.
ΠΡΠΈΠΌΠ΅Π½ΡΡΡΡΡ ΠΌΠ°ΠΊΡΠΈΠΌΠ°Π»ΡΠ½ΠΎ ΡΡΡΠ΅ΠΊΡΠΈΠ²Π½ΡΠ΅ ΡΠ΅Ρ Π½ΠΎΠ»ΠΎΠ³ΠΈΠΈ, ΡΠΎΠ»ΡΠΊΠΎ ΠΏΡΠΎΠ²Π΅ΡΠ΅Π½Π½ΡΠ΅ Π½Π΅ ΠΎΠ΄Π½ΠΈΠΌ ΠΏΡΠΎΠ΅ΠΊΡΠΎΠΌ:
– ΠΠ°ΡΠ΅ΡΡΠ²Π΅Π½Π½ΠΎ ΡΡΡΡΠ°Π½ΡΠ΅ΠΌ ΡΠ°ΠΉΡΡ ΠΏΠΎ Π»ΡΠ±ΡΠΌ ΠΊΠ»ΡΡΠ°ΠΌ.
– Π’ΡΡΡΡΠΈ ΡΠΏΠ°ΠΌΠ½ΡΡ Π±Π΅ΠΊΠ»ΠΈΠ½ΠΊΠΎΠ².
– ΠΠ°ΡΠΏΠ°ΠΌΠ»Π΅Π½ΠΎΡΡΡ Π³Π»Π°Π²Π½ΠΎΠ³ΠΎ Π΅ΠΌΠ°ΠΈΠ»Π° ΡΠΈΡΠΌΡ ΠΏΠΈΡΡΠΌΠ°ΠΌΠΈ Ρ ΡΠΎΠΌΠ½ΠΈΡΠ΅Π»ΡΠ½ΡΠΌΠΈ ΡΠ°ΡΡΡΠ»ΠΊΠ°ΠΌΠΈ
– ΠΠΎΠ½ΠΈΠΆΠ΅Π½ΠΈΠ΅ ΠΏΠΎΠ·ΠΈΡΠΈΠΉ ΠΎΠ½Π»Π°ΠΉΠ½-ΡΠ°ΠΉΡΠ° Π² ΠΏΠΎΠΈΡΠΊΠΎΠ²ΠΈΠΊΠ°Ρ ΠΏΠΎ ΡΠ°ΠΌΡΠΌ ΠΊΠΎΠΌΠΌΠ΅ΡΡΠ΅ΡΠΊΠΈΠΌ ΠΊΠ»ΡΡΠ°ΠΌ.
– ΠΡΠΈΠΌΠ΅Π½ΡΡΡΡΡ ΡΠ½ΠΈΠΊΠ°Π»ΡΠ½ΡΠ΅ ΠΌΠ΅ΡΠΎΠ΄Ρ. ΠΡΠΎ ΠΈΠ·Π²Π΅ΡΡΠ½ΠΎ Π»ΠΈΡΡ Π½Π°ΡΠΈΠΌ ΡΠΊΡΠΏΠ΅ΡΡΠ°ΠΌ.
– 100% Π³Π°ΡΠ°Π½ΡΠΈΡΡΠ΅ΠΌ Π²ΠΎΠ·Π²ΡΠ°Ρ Π΄Π΅Π½Π΅Π³ ΠΏΡΠΈ ΡΡΠ»ΠΎΠ²ΠΈΠΈ Π½Π΅ΡΠ΄Π°ΡΠΈ.
– ΠΠΎΠ»Π½ΡΠΉ ΠΎΡΡΠ΅Ρ.
– ΠΠΎΠ»Π½Π°Ρ ΡΠ΅ΠΊΡΠ΅ΡΠ½ΠΎΡΡΡ Π½Π°ΡΠ΅ΠΉ ΡΠ°Π±ΠΎΡΡ. ΠΠΈΠΊΡΠΎ Π½Π΅ ΡΠΌΠΎΠΆΠ΅Ρ ΡΠ·Π½Π°ΡΡ ΠΏΡΠΎ Π²Π°Ρ.
Π‘ΡΠΎΠΈΠΌΠΎΡΡΡ 7000 ΡΡΠ±Π»Π΅ΠΉ
ΠΠΎΠ»Π½Π°Ρ ΠΎΡΡΡΡΠ½ΠΎΡΡΡ.
ΠΠΏΠ»Π°ΡΠ°: ΠΠΈΠ²ΠΈ, Π―Π½Π΄Π΅ΠΊΡ.ΠΠ΅Π½ΡΠ³ΠΈ, Bitcoin, Visa, MasterCard…
Π’Π΅Π»Π΅Π³ΡΠΌ: @xrumers
Skype: Loves.Ltd
https://xrumer.cc/
Π’ΠΎΠ»ΡΠΊΠΎ ΡΡΠΈ!
Π ΡΠΠΊΠΎΠΆ Π Π°Π±ΠΎΡΠ°Π΅ΠΌ ΡΠΎ Π‘ΡΡΠ΄ΠΈΡΠΌΠΈ!
ο»ΏOur partners have opened a new site vipeth.site I personally supervise the work of employees. In honor of the new year we are giving new users a registration bonus with promo code: NEWUSER24. It gives +70% on the first deposit. Soon we will introduce new artificial intelligence for better work.
Thanmk yoou for thee auspicious writeup. It inn fazct waas a amusement
account it. Loook advanced too ffar addsed agreeable from you!
By the way, hoow caan wwe communicate?