When people here say their 401ks are “maxed”…

[Anonymous]

Are they meaning they contribute the IRS maximum each year, or are they contributing enough to get the maximum employer match? I always assume people are meaning the IRS maximum, but I’m curious - if you have posted that you’re “maxing” your 401k, which one do you mean?

[Anonymous]

I am sure at least 95% of people saying this mean the IRS maximum. (I have been in the situation of maxing employer contribution, but not maxing to IRS limit and I did not say I was maxing and would not say that.)

[Anonymous]

Anonymous wrote:I am sure at least 95% of people saying this mean the IRS maximum. (I have been in the situation of maxing employer contribution, but not maxing to IRS limit and I did not say I was maxing and would not say that.)

+1

[Anonymous]

I mean the IRS max (including catch up if over 50), and assume the same if I hear someone else say it.

Like PP, I've been in the other position and did not say I was maxing it.

[Anonymous]

I've always used it to mean maxed to the IRS limit.

[Anonymous]

For me it means that I am contributing the IRS max to a post-tax Roth 401k that my company offers and my husband is contributing the IRS max to his post-tax Fed equivalent.

[Anonymous]

I'm 52. When I say I max my 401K I mean that I will contribute $30,500 this year.

[Anonymous]

Anonymous wrote:For me it means that I am contributing the IRS max to a post-tax Roth 401k that my company offers and my husband is contributing the IRS max to his post-tax Fed equivalent.

Sorry. PRE-tax Fed equivalent.

[Anonymous]

Irs max.

[Anonymous]

I think here and on forums like Bogleheads, definitely the IRS max. I do think that you might get more variation on Reddit and other forums that attract a younger/more income-mixed audience.

[Anonymous]

Anonymous wrote:Are they meaning they contribute the IRS maximum each year, or are they contributing enough to get the maximum employer match? I always assume people are meaning the IRS maximum, but I’m curious - if you have posted that you’re “maxing” your 401k, which one do you mean?

IRS max, regardless of match. We tax shield the absolute maximum allowable amount every single year, including two backdoor Roth IRAs. Would love a mega backdoor but don’t have access.

[Anonymous]

Agree it's IRS max. I always max and that's the full amount I can contribute.

Some variation as to whether it also includes IRA. I max both but when others say they max I only assume it's the 401k.

[Anonymous]

IRS max. I don't understand how anyone could say their 401K is maxed when 1) the IRS allows more contributions and 2) if you're only contributing enough to get the match then you are...contributing enough to get the employer match which is separate from the IRS limit on how much can be contributed. If I like mint chocolate chip ice cream I don't say I like cookies and cream ice cream. Two different things!

[Anonymous]

Anonymous wrote:Are they meaning they contribute the IRS maximum each year, or are they contributing enough to get the maximum employer match? I always assume people are meaning the IRS maximum, but I’m curious - if you have posted that you’re “maxing” your 401k, which one do you mean?

For me it’s both. I max out my Roth 401K contribution which also guarantees I get the max employer match.

[Anonymous]

To me it meant I was contributing my max and my employer was also contributing its IRS allowable max.

For reference, that’s $69k between the two in 2024.

Chances are good your employer doesn’t do its fair share of this. If so, the “I maxed” dance is not really appropriate.

Do what you can and don’t get all involved in judging whether other people are meeting your personal definition of “maxed.”