Originally Posted by
Andy
OK, I've got my VEBA where I want it and now want to minimize spillage from the 16% 401k contributions. (In previous years, I maxed out spillage to get my VEBA account built up)
From my understanding, $285k (2020 max) x .16 = $45,600 into my 401k.
401k limits for 2020 are: $57K + $6.5K (over 50 catch up) = $63.5K.I understand the catch up, but where does the 57k number come from?
After the company contributions, I need to add another $17.9K from my paycheck to max out 401k contributions.
I realize the contribution percentage could change with a new contract, although the only modification I'd make is to give more flexibility for those that earn more than $285K (ie eliminate automatic spillage into VEBA).
Are there any errors in what I've written above?
Thanks in advance.
serious question, please help a newb out-
are you saying that the maximum amount ANY company is allowed to contribute an employee's 401k is $45,600? i.e. if you make more than 265k, the IRS just says "that's enough, you're only allowed to calculate your company's % contribution on a maximum salary of 265k.
clearly i don't understand how this works. I thought you just added your max $19k (plus catchup if eligible), and the company contributed 16% of whatever your W2 says