Each year, the Internal Revenue Service (IRS) provides a limit on what an individual can contribute to a 401(k) plan. This limit applies to employee deferrals (both Pre-tax and Roth). 

You can contribute $23,000 in 2024 and an additional $7,500 if you are age 50 and older This $7,500 is also referred to as a catch-up contribution.

Our website will automatically account for the contribution limit depending on your age. If you are under 50, our system will limit your employee contributions to $23,000 through payroll submission on our site.  If you are age 50 or better our system will limit employee contributions to $30,500 through payroll submission on our site.  

What if I contributed to another retirement plan during the same year?

The IRS deferral limit applies to all employee Pre-Tax and Roth contributions made to all 401(k) and/or 403(b) retirement plans during the calendar year. The limit does not apply to employer matching or profit-sharing contributions. 

If you have contributed to another employer-sponsored retirement plan during the calendar year, you are responsible for tracking contribution amounts to both plans, making sure this contribution limit is not exceeded. 

Example: Mary (age 45) worked for Delicious Coffee Company until March of 2024 and contributed $4,125 to her retirement plan. Mary started working at Awesome Company in April of 2024. Because of her contributions to her previous employer's plan during the same tax year, Mary can contribute no more than $18,875 to the Awesome Company's retirement plan in 2024. 
If you over-contributed for a given tax year, please reach out to us as soon as possible prior to tax season so we can correct the over-contribution. We will need a copy of your  W-2 forms from each company determine the over-contribution amount.

Please reach out to info@myubiquity.com or chat with us for additional information.