401K Contribution Calculations
Apr 28 2022
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.
$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.