Corrected, thanks Tom. No matter how much (or how many times) we edit, we still makes mistakes. Some of course are due to updated information in an older article like this one.

Contribution Limits. For 2018 the maximum contribution you can make to a 401(k) plan is $18,500. If you are age 50 or older, there is a catch-up provision of $6,500, enabling you to contribute a maximum of up to $24,000 per year.

The catch up contribution is actually $6,000 which makes the total for someone over the age of 50 $24,500.

You also wrote:

In theory, an employer match – plus the maximum employee contribution – can be as high as $53,000 per year, which is the maximum contribution per employee under IRS regulations.

That IRS limit is actually $55,000.

-Tom

Do you have an option to continue funding the 401k??? I thought it was disappearing in the merger?

Hi Aaron – This is really a matter of personal opinion. I like the greater investment options and lower fees of the 403b. But you also seem happy with the professional management option with the 401k. I think you should consider leaving the 401k where it is, and being aggressive in funding the 403b. That will give you the best of both worlds.

Hi Elmer – If you’re describing your 401k, you need to consult with an attorney if you think that there may be fraudulent activity connected with the account. But if the fact that the entity stopped making matching contributions to the plan is your main concern, then they do have a right to do that. In fact, companies change their contributions all the time.