My employer is generally pretty responsive, and I've asked about allowing after-tax contributions to our 401(k) to make things like the mega backdoor Roth viable. There are articles I've found talking about this, so I'm pretty sure it's allowable.
However, here's the response I received from my employer:
The IRS maximum contribution limits for both pre-tax and post-tax contributions are $18,000 for employees under the age of 50 and $24,000 for employees over the age of 50.
The $53,000 post-tax limit you are referring to only applies to SEP IRAs and Solo 401(k)s, which are available to the self-employed and small business owners.
Are they correct? Is there any reputable source that I can actually point that say otherwise? A surface reading of IRS guidance on 401(k) contribution limits seems to say that the employee limit is $18K. But I know after-tax contributions are definitely a thing. So what's up?
EDIT: Part of how I know that after-tax 401(k) contributions are actually a thing is that they're even mentioned in the /r/personalfinance wiki. My goal here is to convince my employer that they are a thing, so that my employer works with our 401(k) provider to give us that option.
Submitted January 30, 2017 at 11:08AM by rdude http://ift.tt/2jKUKRO
