See maximum limits and, more importantly, what goes into the 401(k) max contribution. For 2023, the annual limit is up to $22,500 of your own pay, and the total amount that can go into your account is $66,000. For those over age 50, another $7,500 catchup is allowed.

But this can get complicated, and if you’re hoping to max out your 401(k), it’s helpful to understand all of the pieces involved.

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Contributions can be employee or employer contributions (or both). When your employer contributes, you might get matching money, profitsharing dollars, or other types of contributions to your account.

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Employee money can often go in pretax or as Rothtype money. The choice you make depends on what’s available and what makes the most sense for your strategy. And some plans allow voluntary aftertax contributions. You don’t get a deduction for those savings, but you might be able to convert to Roth and set yourself up for taxfree income later in life.

We’ll also cover some frequently asked questions about how the 401(k) max works:
Can you double the max contribution if you use both Roth and pretax contributions?
And do Roth 401(k) contributions count for the employer match?
How can you double the maximum limit for 401(k) contributions (there are two possibilities)?

Related topics:
What 401(k) Fees Do You Pay?    • 401(k) Fees: What Costs Do You Pay? H...  
Contribution limits from the IRS: https://www.irs.gov/retirementplans/...
Working multiple jobs: https://www.irs.gov/retirementplans/...
Read the updated article: https://www.approachfp.com/howthe40...

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00:00 Limits for 401(k), 403(b), TSP, etc.
01:44 Types of Contributions
03:09 Employee Contributions
04:21 Roth 401(k) Contributions
05:00 Voluntary AfterTax (Mega Backdoor Roth)
06:30 CatchUp Contribution Over age 50
06:47 401(k) Contribution Max for 2023
07:46 Limits Increase With Inflation
08:16 Example of Max Contribution to 401(k)
09:58 FAQs
12:37 Multiple 401(k) Plans and 457
13:24 Maxing Out With Multiple Employer Contributions
14:57 Limitations: ADP or ACP Nondiscrimination Tests
16:30 What if You Don’t Have a 401(k)?

IMPORTANT:
Check with your plan administrator and employer, then triplecheck with your CPA. It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.