The $24,500 employee contribution limit for 401(k) and 403(b) plans is an individual ceiling shared across all plans, regardless of how many employers issue paychecks.
Workers who over-contribute must request a corrective distribution by April 15 of the following year or face being taxed twice on the excess amount.
A governmental 457(b) plan carries its own separate $24,500 limit, letting eligible workers contribute up to $49,000 total when combined with a 401(k) or 403(b).
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A research scientist splits her week between two labs working on a joint supercomputing project. Each employer issues a separate paycheck and provides its own retirement portal. The university offers a 403(b). The federal contractor offers a 401(k). She contributes $24,500 to each, and both dashboards congratulate her for reaching 100% of the annual limit. One employer sees $24,500. The other sees $24,500. The IRS sees one worker who deferred $49,000.
#limit #workers #plans
Workers who over-contribute must request a corrective distribution by April 15 of the following year or face being taxed twice on the excess amount.
A governmental 457(b) plan carries its own separate $24,500 limit, letting eligible workers contribute up to $49,000 total when combined with a 401(k) or 403(b).
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A research scientist splits her week between two labs working on a joint supercomputing project. Each employer issues a separate paycheck and provides its own retirement portal. The university offers a 403(b). The federal contractor offers a 401(k). She contributes $24,500 to each, and both dashboards congratulate her for reaching 100% of the annual limit. One employer sees $24,500. The other sees $24,500. The IRS sees one worker who deferred $49,000.
#limit #workers #plans
3 days ago
