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How do I hit the annual 401(k) contribution limit?

A
Written by Aryamaan Lakhotia

It depends on how you joined Basic Capital:

  • If you started a fresh plan on Basic Capital, we automatically stop your contributions once you reach the $24,500 limit, so there is no risk of over-contributing, and you can track your progress in the Contributions section.

  • If you joined through a plan migration from another 401(k) provider, our auto-stop only counts what you have contributed at Basic Capital, not what you already contributed at your prior provider earlier this year. To avoid overshooting the limit, take $24,500, subtract everything you have contributed YTD (across both the old provider and Basic Capital), and set your contribution rate so the remainder is spread over your remaining paychecks.

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