Reply to Does everyone on DCUM max out retirement?

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[quote=Anonymous][quote=Anonymous]BTW the Max in 401K is VERY HARD to DO and 19K is not the Max

For example the employee compensation limit for calculating contributions is $280,000 so if you make less than 280k you cant max out.

Employers can contribute, too, but there's a $56,000 limit on combined employer and employee contributions ($62,000 if eligible for a catch-up contribution).

If you make 280K and are over 50 you can contribute 24k. But kicker is firms can match up to 280K.

Some DC area firms do a 8% match which is generous. So if over 50 get the 24K plus $22,400 match. That is $46,400 a year in the 401k. If a 10 percent match is $52,400.

Folks will say firms like this never pay a pension. But some folks are putting $4,000 a week a month in the 401K plan.

Dirty secret it is folks who work at firms like this earning 280K or higher that are really the ones with the huge 401ks. There is no way to get it that big that quick otherwise

[/quote]

I understand what you are getting at, but your post is very confusing.  When people refer to the "max," they are talking about the $19,000 employee contribution limit, plus an additional $6,000 "catch-up" contribution if you are 50 or over.  You don't have to make $280,000 to do that.[/quote]

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