gauss
Thinks s/he gets paid by the post
- Joined
- Aug 17, 2011
- Messages
- 3,613
DW is turning 50 this year and thus eligible for "catch-up" contributions in her 401k.
What is clear to me is that the catch-up contribution of up to $6,000 will be available to her in addition to the normal elective deferral limit of $18,000 for a total of $24,000 pre-tax.
In addition she makes use of her plan's provision to allow after-tax (non-Roth) contributions up to the legal limit.
My question is whether or not the defined contribution limit,415(c)(1)(A), of $53,000 is affected by her attaining age 50?
That is to say which of the following two statements, if any is correct:
#1) The total of all employer/employee contributions must be not greater than $53,000.
or
#2) The total of all employer/employee contributions must be not greater than $59,000.
I suspect that we are not the first one to struggle with this question.
Thanks
-gauss
What is clear to me is that the catch-up contribution of up to $6,000 will be available to her in addition to the normal elective deferral limit of $18,000 for a total of $24,000 pre-tax.
In addition she makes use of her plan's provision to allow after-tax (non-Roth) contributions up to the legal limit.
My question is whether or not the defined contribution limit,415(c)(1)(A), of $53,000 is affected by her attaining age 50?
That is to say which of the following two statements, if any is correct:
#1) The total of all employer/employee contributions must be not greater than $53,000.
or
#2) The total of all employer/employee contributions must be not greater than $59,000.
I suspect that we are not the first one to struggle with this question.
Thanks
-gauss
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