Does a 401(a) count towards a 401(k) limit? | Ep.34
Georgia Safe Retirement Planners · Georgia Safe Retirement Planners
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Show Notes
When planning for retirement, understanding how different retirement accounts interact can be confusing. In this episode, we break down the difference between 401(a) and 401(k) plans and clarify how contributions to these accounts are treated. While contributions to a 401(a) don’t directly reduce your 401(k) contribution room, the IRS does impose a combined limit on all employer-sponsored retirement plans.
In 2024, the total combined contribution limit for both 401(a) and 401(k) accounts is $69,000, which includes both employee and employer contributions. We also discuss the $23,000 limit specifically for employee contributions and what that means for your retirement strategy. Tune in to learn how to make the most of your retirement savings while staying within the IRS guidelines!