Скачать или смотреть Does a 401(a) count towards a 401(k) limit?

When planning for retirement, it's essential to understand how different retirement accounts work together. In this video, we dive into the differences between a 401(a) and a 401(k) plan, and explain whether contributions to one affect the limits on the other.

A 401(a) plan is separate from a 401(k), meaning contributions made to your 401(a) do not directly count against your 401(k) contribution limit. However, there's an important rule to keep in mind. The IRS sets a combined limit for total contributions to all employer-sponsored retirement plans. This includes both 401(a) and 401(k) plans.

For 2024, the combined limit for both plans, including employee and employer contributions, is $69,000. Within that limit, the maximum employee contribution is $23,000.

So while your 401(a) contributions won't reduce your personal 401(k) limit, the total contributions across both plans from you and your employer must remain within the IRS's overall limit. This is important for ensuring you don’t exceed contribution limits, which could result in tax penalties.

Make sure to review your contributions with your employer or a financial advisor to stay within the limits and maximize your retirement savings!

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