http://www.iraroth.net IRA Questions and Answers Tue, 17 Jan 2012 00:09:43 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 http://www.iraroth.net/2009/12/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/#comments Sat, 05 Dec 2009 22:24:08 +0000 admin http://www.iraroth.net/2009/12/are-contributions-to-401k-prorated-from-the-time-you-start-work/ I have two questions about my employer retirement 401k contributions.
1. The maximum I can put in is $15,500 for 2007. But I started in mid year. Is it prorated from the time I started? Example: I started on July 1, is the contribution $15,500/2 = $7,750.
2. My employer matching is 2:1 up to a maximum of 6% of salary. Example: $50,000 annual salary, employer contribution is $3,000. For every dollar I put in, they will put in $0.50. Is the employer matching of $3,000 included in the $15,500 which means the employee total amount invested is $12,500, or, is it $15,500 from employee plus $3,000 from employer which would equal $18,500. I think it’s the former but just want to check.
Thanks….

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