Max Yearly Contribution Question

[marka1620]

I understand that the current max is $17,500 for the year. But, I was wondering if that total is your contribution AND the government matching....or is the $17,500 your contribution only.

Thanks

[PessOptimist]

Yours only. Welcome.

PO

[Boghie]

I understand that the current max is $17,500 for the year. But, I was wondering if that total is your contribution AND the government matching....or is the $17,500 your contribution only.

Thanks

As PessOpimist stated, the $17,500 IRS limit is a limit on your contributions - it does not include the match. The match is limited to 6% of gross (I think). Our max is 5%.

To add a bit, your limit is higher (I think about $22,000) if you are 50+ years old. This is the result of the 'catch up' contribution capability.

Enjoy the investing!!!

[Frixxxx]

$17,500 is the limit (this is from your income and affects your taxes)
$5,500 catchup (have to be over 50)
Matching $$ are a benefit and not a taxable item which is why you need to contribute up to the 5% to get the most free money.
There are other limits imposed on the max that could be put into your account. Basically, it limits what an employer can 'match' per employee. ($52,000 max)

If you are saving more than that, you will have to find other alternatives. Uncle Sam doesn't like you to defer your taxes.....

If you can, grab an LES and go to: https://www.tsp.gov/planningtools/paycheck/paycheckEstimator.shtml
to see the way it changes your paycheck.