Originally Posted by
ackeight
The most an employer can contribute is based off of $285k of your w2. So that 9% ($25,650) and the $19.5 you are allowed won’t get you to reach the 401k max.
I like having my 401k. I’m young and being limited to “just” $130k and 9% 401k seems low. 30 years down the road when I retire I am confident and hopeful I can use my 4% withdrawal rate and pull $300+k/ year in a mix of Roth and traditional. This is maxing out my 401k with 19.5 Roth and the rest company contributions. The overage I either self invest or use an overage and excess cash account.
This could all get wiped out if we have a catastrophic economic event, so there’s that.....
You have an inaccurate understanding of allowable employer limits i think?
There are several limits involved. My math referenced the 415 max limit of annual employer contruibution. Its just over $37k this year.
So to extract max employer funding to your 401k....the % of income has to realize that $37k.
Thats all my math was trying to explain.