Comments on: Are contributions to 401k prorated from the time you start work? http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ed m http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/comment-page-1/#comment-107 ed m Sat, 05 Dec 2009 18:00:26 +0000 http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/#comment-107 1) no and if you are over 50 you can add an additional 5k on top of the 15K 2) no it is in two separate accounts 1) no and if you are over 50 you can add an additional 5k on top of the 15K

2) no it is in two separate accounts

]]> By: SCH http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/comment-page-1/#comment-106 SCH Sat, 05 Dec 2009 17:59:13 +0000 http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/#comment-106 An employee can contribute a maximum of $15,500 per calander year to their 401k...it is not prorated if you were to start a job in the middle of the year...however if you contributed to a 401k this year (not this particular companies 401k, lets say you contributed to your former employer's 401k) that would be included in that $15,500 figure. No, your employer match does not count towards that $15,500...they are free to contribute what they want and it will not affect you at all. An employee can contribute a maximum of $15,500 per calander year to their 401k…it is not prorated if you were to start a job in the middle of the year…however if you contributed to a 401k this year (not this particular companies 401k, lets say you contributed to your former employer’s 401k) that would be included in that $15,500 figure.

No, your employer match does not count towards that $15,500…they are free to contribute what they want and it will not affect you at all.

]]> By: Michael http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/comment-page-1/#comment-105 Michael Sat, 05 Dec 2009 17:35:34 +0000 http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/#comment-105 part1) No it is not prorated. The annual limit remains 15,500. The only restriction is how much can you aford to put in per week. Also, the plan needs to be a qualified' plan. To do that your company must maintain a ratio of contributions between 'highly compensated employees' and all other employees. This MAY result in a maximum percentage that yur employer allows you to contribute each week, and that maximum percentage MAY prevent you from maxing out. If you are over 50 you are allowed an additional separate 5000 'catch up' contribution. Part 2) No, the employer portion does not count toward your maximum. You can contribute 15,500 and your employer an additional amount. part1) No it is not prorated. The annual limit remains 15,500. The only restriction is how much can you aford to put in per week. Also, the plan needs to be a qualified’ plan. To do that your company must maintain a ratio of contributions between ‘highly compensated employees’ and all other employees. This MAY result in a maximum percentage that yur employer allows you to contribute each week, and that maximum percentage MAY prevent you from maxing out.

If you are over 50 you are allowed an additional separate 5000 ‘catch up’ contribution.

Part 2) No, the employer portion does not count toward your maximum. You can contribute 15,500 and your employer an additional amount.

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