Originally Posted by
Pro Fessional
It should be pointed out that $52,000 is the maximum annual contribution limit from all sources. The company 15% contributions will stop flowing into your 401k when you reach $260,000 income for the year or $52,000 in total contributions (not counting the $5500 catch up contributions), whichever comes first. When that $52,000 limit is reached the company 15% contribution will continue to be paid to you as taxable income, and you will no longer be eligible to contribute to your 401k (except the $5500 catch up portion.) The company contributions are pensionable whether paid into your 401k or paid as taxable income so it is effectively a 17.25% contribution.
BTW what is "Obama's new pay off the debt bank account?"
Actually those numbers have all been bumped up for 2015.
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from
$17,500 to $18,000.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from
$5,500 to $6,000.
The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from
$52,000 to $53,000.
The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) is increased from
$260,000 to $265,000.