ST Alpha - "They don’t mention it in the article, but every proposal I’ve seen to cap pre-tax 401(k) contributions has been paired with requiring plans to offer" (Reading a Post)

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In response to "I'm freaked out that I'm nowhere NEAR on track with my 401k" by ty97

They don’t mention it in the article, but every proposal I’ve seen to cap pre-tax 401(k) contributions has been paired with requiring plans to offer

Posted by znufrii Oct 20 '17, 08:20

a Roth option as well, fwiw.

Responses:

I already have a Roth option. I WANT my pre-tax option. -- nm - ty97 Oct 20, 08:22 10
- can I ask a dumb question? what's the point of capping roth contributions? like, if I'm not tossing cash into a roth, I'll just invest it somewhere. - amanda jones state university Oct 20, 08:25 9
  - You pay taxes upfront to withdraw earnings tax-free - znufrii Oct 20, 08:31 4
    - are the ira contrib maxes for employee contrib only? or what employer contribs as well? (obviously I have never maxed anything.) -- nm - amanda jones state university Oct 20, 08:39 3
      - I know the 401k maxes have employee contribution maxes and separate 'total contribution maxes' (about 3x of the employee max) -- (edited) - ty97 Oct 20, 08:45 1
        
        2017: 401k deferral max is 18,000. 401k Annual DC contrib max is 55,000 (employee + employer). IRA/Roth max is 5500. - decline Oct 20, 08:55
      - I don’t think the overall caps would change based on what I’ve heard so far, but really it’s all speculation anyway st this point -- nm - znufrii Oct 20, 08:42
  - you are probably phased out of any tax benefit of your roth contribs now. -- nm - decline Oct 20, 08:27
  - no taxes on gains when I withdraw? is that it? -- nm - amanda jones state university Oct 20, 08:26 2
    - I'm guessing that's it. You don't pay any capital gains either annually or at withdrawal, which is a nice perk. -- nm - ty97 Oct 20, 08:28
    - yep -- nm - decline Oct 20, 08:27

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They don’t mention it in the article, but every proposal I’ve seen to cap pre-tax 401(k) contributions has been paired with requiring plans to offer

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