Limits on 401K contributions
I contribute $23K to my company 401k each year, but have a question about “after tax” contributions above this amount. IRS web site seems to say the 23K limit (I’m over 50 so catchup applies) is for deductable contributions, and says there is a $52K total limit to include employer match. All my contributions are Roth 401K but I thought they were limited to the $23K. Can I also make additional “after tax” contributions?
Permalink Submitted by Alan - IRA critic on Tue, 2014-11-11 02:58
If your plan offers a separate contract for after tax contributions (to the pre tax account as opposed to the Roth account), you can make additional contributions as long as your total contributions including elective deferrals, employer matching, and forfeitures do not exceed 52k (plus catchup). It does not matter whether your elective deferrals are pre tax or Roth. After tax contributions are not subject to the elective deferral limit of 23k, but many plans will cap them so that you do not exceed the 52k due to forfeitures or profit sharing matching contributions.