Kevin C. Wong

401K Contribution Calculations

So IRS 40K contribution limits for 2022 are

$20500 regular
$6500 catch up

I just realized catch up contribution is calculated separately. You specify once percentage contribution for regular and one for catch up. When one of the contributions hits its limit it stops.

So far this year I've made 7 contribution payments (3 parts regular, 1 part catch up) for a total of $8296.

Regular = $6222 / 7 * 24 = $21333, so that's on track to max out
Catch Up = $2074 / 7 * 24 = $7111, so that's on track to max out

Everything looks fine.