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Does this mean that I can contribute $20,500 personally, and my employer can still contribute more on top of that?
by spiderice 5y ago
Does this mean that I can contribute $20,500 personally, and my employer can still contribute more on top of that?
- nemo44x 5y agoYes. 20.5 is your limit but employer can match. 401k match is > than stock options in most cases long term. Of course options can be a lottery you win sometimes.
- pseudoramble 5y agoYes that’s exactly it. There may be other more complex scenarios where it matters too but this is the most common reason for it I see at least. In other words, it’s hard to reach the true 401k cap even with huge contribution amounts from everywhere.