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> Is that from a legal requirement? No and it's just weird. If he contributed the maximum he could have contributed 18,000 plus 6,000 catch up taking him to 2
by ryanmercer 8y ago
> Is that from a legal requirement?
No and it's just weird.
If he contributed the maximum he could have contributed 18,000 plus 6,000 catch up taking him to 24,000 with a defined contribution maximum limit from all sources of 60,000.
That means they could have contributed another 20k.
- dboreham 8y agoThere are rules about how much the company contributions can be (aimed at preventing executives paying themselves huge tax-free pensions).
- wil421 8y agoFor employee contributions the max is $18,500k and for employer contributions it’s $32,500. You can also add $6,000 more if you are over a certain age.
- deleted 8y ago[deleted]
- dboreham 8y agoI'm talking about the rules that relate the contributions by the company to highly compensated individuals vs the bulk of the workforce. See https://www.goodfinancialcents.com/401k-limits-for-highly-compensated-employees/ https://www.goodfinancialcents.com/401k-limits-for-highly-co...