Employee has exceeded $10,000 pre-tax contribution, can he still contr

[Guest Diana Prewitt]

Our Company matches pre-tax and after-tax employee contributions to 401K. After employee has maxed $10,000 on pre-tax, can he go to after-tax contribution to continue to get Company's match? Thanks for your help and possibly where this info originates.

[LCARUSI]

You have to read your plan document carefully, but it sounds okay from the way you described it.

Remember, you also have to monitor the 415© limit equal to the lesser of:

25% of pay,

$30,000

This limit applies to all additions to the employee's account - pretax, after-tax, match, profit sharing,forfeitures (everything but investment earnings)

[MWeddell]

I agree with the above posting.

If you're looking for a cite, look at Internal Revenue Code Sections 401(a)(30) and 402(g), especially the definition of elective deferrals in 402(g)(3). The limit doesn't apply to employee [after-tax] contributions. That's where the $10,000 limit (which is $7,000 plus many years' worth of cost of living adjustments) comes from.