- October 15, 2018 at 6:30 pm #263891
The employee has a maximum cap on contributions of 100% of salary. But there are “catch up” employee contributions: does that mean the employee can contribute 100% of salary PLUS the catchup, or is it the empoyee can contribute “18000 plus catchup until the amount bumps into a 100% of salary ceiling”.?October 15, 2018 at 6:33 pm #265928
It looks to me like the employee can contribute $18.5k and the employee over 50 can add $6k in catchup. However, since this is a tax question, and we’re not licensed to provide specific tax advice, I’ve provided the IRS instructions. It’s best if you chat with your tax accountant to make sure you’re maximizing your deductions without going over the limit (and as you can see in the link, rules vary by industry).