Does employer matching count towards the $15,500 IRS 401k contribution limit?

[her209]

Or is the limit only applicable to the employee? Anyone know?

EDIT: And what happens if I overcontribute?

 

[batchusa]

I *think* its only applicable to the employee.

 

[Jadow]

no

 

[her209]

Originally posted by: Jadow
no

You're saying "no" to which question?

 

[thirdlegstump]

No as in if you contribute 15K and your employer matches your contribution, you get 30K that year.

 

[her209]

Originally posted by: deathkoba
No as in if you contribute 15K and your employer matches your contribution, you get 30K that year.

What about the 2nd question?

 

[EagleKeeper]

Your employeer should make sure that you do not.

Otherwise, you need to be refunded the overage.

 

[jupiter57]

So, are you telling us that you put more than $300 a week into your 401k? 🙂

That would be a great way to invest.
I only put in $100 wk., with a $50 employer match (Their max, per our plan).
But on the other hand, my union pension is paid in full. (5 more years & I'm going for it, if I live that long)

 

[her209]

Okay, I just confirmed with one of the company accountants and she said that the company makes sure you don't put more than the allowed limit into the 401k.

Next question is, can you have an IRA in addition to the 401k? Follow up question, as I understand it, if you make a certain amount of money, contributions to the IRA are only partially deductible. Is the figure that is used to calculate full deduction or partial deduction based on gross wages, i.e., amount of money made regardless of deductions like contributions to 401k, etc.?

 

[compuwiz1]

No. 🙂

 

[her209]

Originally posted by: compuwiz1
No. 🙂

Are you saying no to this question: "Next question is, can you have an IRA in addition to the 401k?"

 

[PowerEngineer]

Dang, I should be doing my taxes too...

Yes, you can also have an IRA. The deductability of your contribution to a regular IRA is tied to some net income line on the 1040 (should be doing my taxes to find out myself), not to your gross income. Pretax deductions for stuff like your 401k will not appear in the taxable income reported on your W-2. If your IRA contribution isn't fully deductable, then I'd take a careful look at making it a Roth IRA (where the contributions aren't tax deductable, but there are no taxes to pay on withdrawl).

Have fun...