Does your employer match affect 401k limit

No, employer match does not count towards 401(k) limit, however, the IRS does limit total contribution from both the employer and the employee combined. Education General

Employers can set a cap as to how much they will contribute towards an employee’s 401 (k) account; this usually does not exceed 5% of the employees’ pay. However, employers may also include matching funds in lump-sum payments throughout the year. This means that there is no limit on when you can receive your employer’s matching funds.

Does My Employer’s 401(k) Match Count Toward My …

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Therefore, in 2022, an employee can contribute up to $20,500 toward their 401 (k). The employer can match the employee contribution, as long as it doesn’t exceed the separate $61,000 employer-employee matching limit. Since matching $20,500 in full would only total $41,000, most employees don’t have to worry about this dilemma.

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