combined 401K contribution limits

[CG1]

Hello,

I am new here and I am not sure how much I am suppose to share - but I am looking for some advice so here she goes. I am recently divorced looking at 50 soon and need to rebuild my 401k post the divorce.  I have 250K left, so a long way to go.  I currently contribute $18,000 pre tax and my company matches 6% or $10,800.  Additionally my company contributes a varying amount annually to make up for freezing of my pension - this last year the contribution was $10,000.   My frozen pension has a meager $60,000 balance and seems to be growing at 4%. 

In December I turn 49 and I believe I am eligible for catch-up payments starting in January, is this correct?  I will make the full $6,000 once permitted.

I am about to purchase a new house (renting a small apartment currently) .  I'll owe 325K on the mortgage and plan to pay that off in 5 years (certainly in 6).  to accomplish this I will not touch my 401K contributions as defined above.  Once the house is paid off I will be 55(ish) and can then maximize my 401K combined contributions - I think I read that's $54,000 + the pretax catch-up of $6,000 making it $60,000.  Is that accurate?  is that all me or does it include employer match? if not than my total contribution could be $70,800 ?  also, what about the additional amount being funded by my employer due to the old pension - does that have interplay?  

Given what I have explained here - what realistically might I be able to grow my retirement fund to at 60, 64 and 67.  I'd love to retire at 60, would accept 64 and if need be and health holding out 67.  My final question, with the projected retirement fund - what could it pay without touching principal? and how much would it pay if I planned to pull 40 years from it and net to zero?

lots of questions, I know.  I hope I am posting this in the proper section - any assistance would be greatly appreciated !   

 

 

[WCC]

58 minutes ago, CG1 said:

In December I turn 49 and I believe I am eligible for catch-up payments starting in January, is this correct?

Yes

58 minutes ago, CG1 said:

I think I read that's $54,000 + the pretax catch-up of $6,000 making it $60,000.  Is that accurate?

Yes $54,000 is the max amount you can receive plus the catch up for a total of $60,000, but see my next answer.

58 minutes ago, CG1 said:

is that all me or does it include employer match? if not than my total contribution could be $70,800 ?

Your limit is $18,000 plus the catch up for a total of $24,000, the remainder must be funded by your employer with match and/or profit sharing money. Your cap is $54,000 plus the catch up, not 70,800. The profit sharing variable depends on the plan design. You would need to speak with your employer about how the profit sharing allocation works.

 

58 minutes ago, CG1 said:

also, what about the additional amount being funded by my employer due to the old pension - does that have interplay?  

Yes, that counts towards your $54,000 limit if they are funding it into the profit sharing/401k plan.

 

58 minutes ago, CG1 said:

Given what I have explained here - what realistically might I be able to grow my retirement fund to at 60, 64 and 67.  I'd love to retire at 60, would accept 64 and if need be and health holding out 67.  My final question, with the projected retirement fund - what could it pay without touching principal? and how much would it pay if I planned to pull 40 years from it and net to zero?

you need to engage a personal financial adviser for this question. (or be very comfortable with online financial calculators)

[CG1]

Hello WCC - Thank you for the response, your input is greatly appreciated !  I am really concerned for retirement and this topic is far from my wheel house.  I have started to research financial advisors and will certainly sit down with someone sooner than later.  thank you again !

[TPAJake]

WCC seems to have answered most of your questions & you have a very generous Employer-Sponsored plan which you are taking advantage of--Good for you!  Find a good Certified Financial Planner (CFP) who can do all the rest for you.  Sounds like you're on the right track!

[CG1]

Thank TPAJake.  that's very nice to hear as I am have been very concerned since my divorce and losing so much of my retirement savings.  I never imagined myself at being in this position at this point in my life.  But I am not above tightening the belt and putting everything into my debt (house) and retirement.  thank you !!