Permitted contribution max w/Catch-up when after-tax-dumb question? Or does anyone know the answer.

[Guest devonlucy]

Question about this use case:

401(k) plan

Mary makes $100,000

Plan limits are:

Pre-tax 40%

After-tax 40%

Total 40%

No employer contributions

Plan administers 50+ catch-up as a single rate arrangement whereby employee’s pre-tax contribution rate is intended to express both pre-tax and 50+ catch-up

If Mary wants to contribute 18% pre-tax for 2005 ($14,000 pre-tax $ limit + $4,000 catch-up $ limit), what’s the maximum after-tax Mary can contribute - $22,000? Or is it $26,000 because you don’t count the catch-up $ for purposes of the plan limit.

If $22,000 then Mary was able to increase the total pre-tax contributions she could otherwise make (from 14000 to 18000) without the 50+catch-up feature but her total permitted contributions remained unchanged at $40000.