After-Tax 401k Limit

Submitted by Bryan Jimmerson on Fri, 2022-07-08 13:44

I have a client who has 2 W2 jobs (not self employed, no solo 401k) and is contributing to both 401k plans. One plan has a pretax, roth and an after tax option; he is contributing to all 3. In the 2nd plan, he is contributing pre tax and after-tax (not Roth). If I’m not mistaken he is capped at $20,500 for his pretax and Roth deferrals. The after tax contributions would not count towards the IRS limit, right ?



Submitted by William Tuttle on Fri, 2022-07-08 15:43

  • There is one employee deferral limit (2022 = $20.5K traditional and Roth combined) across all 401k, 403b and SIMPLE IRA plans.
  • There is a separate (employee + employer) annual addition limit (2022 = $61K) for each unaffiliated employer.
  • The client’s employee deferrals are limited to $20.5K. If the employers are not a controlled or affiliated service group, the client can have up to $61K in annual additions at each employer subject to plan limitations and personal choice.


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