• ALoafOfBread@lemmy.ml
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    1 year ago

    The limits on 401k contributions are federally regulated and are set as a nominal amount.

    Employers often have employees select a percentage of their income to contribute, and for very high income earners, 15% might be over the federal limit. Also, employers can match employee 401k contributions. That is usually a percentage match of annual salary up to a given limit (e.g. 2% of salary up to $3000).