Subject to annual IRS limits, you can contribute anywhere from 1% to 90% of your pay (which is eligible) on a pre-tax basis, after the tax basis of the Roth. In 2022, the IRS limit is $20,500. But there is a loophole – if you turn 50 in 2022 or are older than 50, you will be able to contribute $6,500 in catch-up contributions this year. Therefore, these catch-up contributions will not be matched by the company.
If an employee works more than 30 hours a week, or exactly 30 hours a week, they can do the following –
RSUs that grow and vest over timeCan get extra/additional RSU grants.
According to an update made in 2022, the employees can save up to $37,000 on the Mega Backdoor Roth portion of their 401(k).
Conclusion
How Much Can I Invest In My 401(K) Per Year?
Based on the announcement made by the IRS in the year 2022, it can be observed that one person can contribute up to $19,500 per year only if the employee is under the age of 50. But if you are over the age of 50 or are 50 years old in 2022, you can contribute an additional $6,500 to your 401(k).
How Much Can I Put Into My Mega Backdoor Roth Conversion?
