Stupid 401k question

[Anonymous]

Does the employer contribution impact the total amount one can contribute to the 401k? For instance, if your salary is $100,000 and you defer 10% or 10k and your employer matches up to 5% (or 5k) - can you then contribute another 7k to get to $17k or only 2k (because of the 5k coming from your employer)?

Thanks.

[Anonymous]

No, the employer contribution doesn't impact the total amount. You can contribute yourself up to the ceiling.

[Anonymous]

Not a stupid question, I didn't realize that's how it worked either.

[Anonymous]

Thanks!

[Anonymous]

There is no such a thing as a stupid question (even if some DCUMers think otherwise). I just wanted to add that if you want to max your account, the max this year is 17.5k not 17k (every little bit counts )

[Anonymous]

Not stupid at all.

Stupid would be asking "What does the 'k' stand for"? Cause, duh, everyone knows that.

[Anonymous]

Anonymous wrote:Not stupid at all.

Stupid would be asking "What does the 'k' stand for"? Cause, duh, everyone knows that.

Are you sure? I put tons of money into my 401K, but no longer remember what the K stands for!

[Anonymous]

The employer and employee combined max is something like 48K (havent checked in a while). If you have any self employed income, you can use that to "top off" whatever your employer does not.

For instance, in my case, I contribute $17K a year and my employer matches about $15K on top of that. I then contribute from my other employer (myself) the balance of $16K, thereby reducing my taxable income substantially while also effectively squirrelin' away $50K a year. You can do it with both spouses too if you have enough self-employment income.

[Anonymous]

I once asked this question of the hr specialist at my office (Feds) and she did t know the answer

[Anonymous]

What about when you have 2 jobs--both as an employee? Am I capped at 17.5K plus employer contribution or can I contribute 17.5K from EACH employer?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not stupid at all.

Stupid would be asking "What does the 'k' stand for"? Cause, duh, everyone knows that.

Are you sure? I put tons of money into my 401K, but no longer remember what the K stands for!

Try writing it 401(k) and see if that helps

[Anonymous]

Does anyone know if you can trade options in a 401k brokerage account?

[Anonymous]

Anonymous wrote:What about when you have 2 jobs--both as an employee? Am I capped at 17.5K plus employer contribution or can I contribute 17.5K from EACH employer?

No. Employee contribution is capped at $17.5K. You can try to maximize matches though - i.e. if both employers offer a 5% match, rather than put 17.5K into one you might be better off splitting the difference and getting both matches, but your employee contribution across both is capped.

[Anonymous]

The term 401(k) simply denotes that particular section of the IRS Tax Code when it was enacted in 1978.

[Anonymous]

Anonymous wrote:I once asked this question of the hr specialist at my office (Feds) and she did t know the answer

IME the fed HR people are the least useful people in the world