Retirement Planning / Maxing 401K but employer is still contributing - that OK?
Nov 04, 2022
Maxing 401K but employer is still contributing - that OK?
I'm putting $20,500 away into my 401K but my employer is still contributing their match beyond that limit. Isn't there a penalty to overcontributing? Hope I'm wrong here but noticing it only now that it's November.
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Work Retirement Plans: Fast Facts
Retirement Planning
8 min
Replies (6)
Nov 04, 2022
@KristieD7M, the max you can contribute is $20,500 but the total contribution limit which also includes your employers contribution is $61,000. So you should be good!
Nov 04, 2022
@KristieD7M, Ali's right but there's more: After hitting your pre-tax contribution limits, you can see contribute post-tax contributions on top if the plan allows for it. That's not considered to be over contributing. If you're also contributing post-tax contributions you can go up to a max contribution limit of $61,000, but if you're over 50, you can go up to $67,500. And don't forget that depending on your income level, you might also be able to put away pre-tax contributions via a traditional IRA too.
Dec 08, 2022
@Jess225, nice thanks for your help
Dec 19, 2022
@KristieD7M, you got it, good luck
Mar 15, 2023
@Jess225, That is an insane amount over what employees can contribute! I had no idea it was well over $60,00?!