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Personal Finance and Investing

question everything

(50,677 posts)

3. $19,000 with a $6,000 catch up if older than 50

Reply to Frustratedlady (Reply #2)

Mon Nov 4, 2019, 08:55 PM

Nov 2019

https://www.goodfinancialcents.com/401k-contribution-limits/

Not dependent on the company match, but it makes sense to contribute at least the amount where you will get the maximum match.

Most people do not contribute the maximum, but if the match is a certain percentage up to, say $5,000 it makes sense to contribute at least that amount - if you can afford.

People often forget that contributing to 401K reduces their taxable income and their take home will not be reduced by the amount contributed.

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Make These Tax Moves for 2019 Before It's Too Late [View all] question everything Nov 2019 OP

aggregating traditional IRA RMD's - caution: inherited IRAs must be aggregated separately progree Nov 2019 #1

Out of curiosity, what is the max for a 401K? Does it depend on any company match? Frustratedlady Nov 2019 #2

$19,000 with a $6,000 catch up if older than 50 question everything Nov 2019 #3

Take home pay will be reduced by: the amount contributed minus tax savings progree Nov 2019 #4

Thanks. I did not phrase it correctly question everything Nov 2019 #5

You did fine, I got it on the second read, but thought I'd clarify with an example progree Nov 2019 #6

Thanks to everyone who replied. Frustratedlady Nov 2019 #7

In addition, one can make IRA contributions: $6,000 in 2019 ($7,000 if age 50 or over) progree Nov 2019 #8