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Southwest Illinois | There is a federal max in terms of contributions. Companies can choose to match whatever they want, but the total contribution limit cannot be exceeded. The company I last worked for allowed us to make after tax contributions as well, and they would provide a discretionary match based on profitability. When I left I rolled the regular before tax money into an IRA and the after tax money into a Roth. Obviously not everyone can max out contributions. My wife has a good job but has a defined benefit retirement pension however they didn't have much of a matching 401K plan as my employer did. So I put everything I could put away to get the full match and any discretionary match. Once I quit we did increase her contribution to their 401K, but the matching portion is peanuts as they stick most of their retirement money into the pension, which is rare these days. | |
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