Comments on: 401k Contribution And Income Limits (Annual Guide)

By: Robert Farrington

Robert Farrington — Sat, 02 Apr 2022 17:01:55 +0000

In reply to Mike. You're correct. The catch-up adds to the combined limit.

By: Mike

Mike — Sat, 02 Apr 2022 15:25:44 +0000

I believe the base limit you show (Combined employee and employer contribution) is only showing the limit for people under the age of 50. My understanding is that the base for people 50+ increases an amount equivalent to the catch-up? For example, I believe for 2022 the maximum combined contributions for 50+ is $67,500. Can you confirm this?

By: Robert Farrington

Robert Farrington — Thu, 15 Nov 2018 23:54:39 +0000

In reply to Bruce Orndorf. Why are you withdrawing the full balance? Do you need all the funds? Most people either leave it and draw down as needed, or roll it over into an IRA. Remember, you pay taxes on your withdraw, so it only makes sense to take what's needed. And if you have a large balance, that could be a major tax hit - putting you up into a high tax bracket overall. See the 2018 Federal Tax Brackets here.

By: Bruce Orndorf

Bruce Orndorf — Thu, 15 Nov 2018 22:03:10 +0000

We are withdrawing my wife’s 401K complete balance as she turned 59 and a half this month. Is there any type of advantage or disadvantages in waiting to withdrawal it in 2019 compared to withdrawing it this year?

By: Robert Farrington

Robert Farrington — Sat, 13 Jan 2018 16:36:10 +0000

In reply to ahock ahock. She can only contribute up to the plan limitations or her compensation amount minus any withholdings like insurance, etc.