In relation to retirement financial savings, 401(ok) plans are a well-liked possibility. These plans permit staff to save cash on a tax-advantaged foundation, and plenty of employers provide matching contributions. However does employer match rely towards the 401(ok) restrict?
The reply is sure, employer matching contributions do rely towards the 401(ok) restrict. Which means the whole sum of money which you can contribute to your 401(ok) annually is the sum of your individual contributions and your employer’s matching contributions. For 2023, the 401(ok) contribution restrict is $22,500 ($30,000 for these age 50 and older). This restrict contains each worker contributions and employer matching contributions.
