Hello, if I make 70k a year and get paid bi-weekly. How do I determine what percentage I need to enter to max out my 401k plan. I am under 50 years old.
Thanks
Hi Tom!
The max you can contribute to a 401(k) plan as an employee is $22,500 in 2023. This does not include any employer matching. The benefit administrator usually will automatically stop contributions so you can’t enter more than $22,500. If you make exactly $70,000, you would need to contribute about 32% of each paycheck throughout the year to max out your 401k.
If you haven’t already, check out our Facebook Group. There are a lot of people that tend to answer questions fairly quickly on there!