About 401(k) Employer Contributions

Video Transcript

"My name's Phillip Beningoso. I'm an investment professional, and I'm going to be discussing 401K employer contributions. Now, employer-imposed 401K contribution limit guidelines. Employers can choose their own maximum limit. For example, an employer might limit their employees to a maximum contribution limit of, say, 10 percent of their salary. Now, that means that a person with a salary of, say, 50,000 effectively has a contribution limit of 5,000 dollars, even though the government limit is higher. Now, of course, if a employee of that same company is making 250,000 dollars and wants to contribute 10 percent, they can't because the government's limit would take effect in this case. So the general rule is to determine what your employer allows and then take a look at the 401K contribution limit of the year that the government allows. Any information provided here is for general informational purposes only, and should not be considered an individualized recommendation or personalized investment advice. Any investments or strategies mentioned here may not be suitable for everyone. My name's Phillip Beningoso, and I'm an investment professional."