On the subject of retirement financial savings, 401(ok) plans are a preferred choice. These plans permit workers to economize on a tax-advantaged foundation, and plenty of employers supply matching contributions. However does employer match depend towards the 401(ok) restrict?
The reply is sure, employer matching contributions do depend towards the 401(ok) restrict. Which means that the entire amount of cash which you can contribute to your 401(ok) every year is the sum of your personal 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 consists of each worker contributions and employer matching contributions.
