401K Question

[motherofpms]

My company no longer matches contributions during the year, instead they send a lump sum money for year on December 31st (IF You are still with the company).
If I recall correctly yearly contribution to 401K cannot be over 17500.
Let's say that you would contribute 14000, and your company should be giving you about 7K at the end of the year. Would they only give you 3.5K because you already reached your limit?

[disneysteve]

No. The contribution limit refers to how much you are allowed to put it of your own money. The company match is separate and doesn't count toward the $17,500 limit. They could match 100% if they wanted to and you'd end up with $35,000 (wouldn't that be nice?).

[motherofpms]

it would be nice but they only match first 6%

[annac113]

The 17,500 is the limit for your own contributions. The company should still be giving you the 7K because that is separate and does not count towards your own contributions.
For those who are 50 years or older, the limit is 23,000 for 2014.

[jpham540]

Wow sound a lot like my company, they did the same for us too. I am waiting to see how much my company contributes to my 401k. We suppose to get a lump sum at the end of the year, but didn’t get it yet. Hopefully they will have it on my next paycheck or else I might have to talk to their HR department . They also match 6% for us but only 50 cent to a dollar. So the way I see it if I contribute the max $17,500 I would only get 3% because they only match 50 cents to a dollar. So I’m not sure if my calculation is correct but it will be $525 that I will get from company match. Seem kind of low unless my calculation is wrong.