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Yes it’s inclusive of the regular limit
Ah, financial advice from chat GPT … 401k limits have nothing to do with your employer. Regardless of if you switched firm or what your other firm did, the standard practically every firm allows is $24,500. Some firms allow for the mega backdoor which allows you to contribute an additional $47,500 in after tax contributions for a total of $72,000 in contributions.
Advice here is mostly incorrect if you change jobs mid-year. You can contribute up to the $72k max in the 2nd plan, if they’re solely non-Roth after-tax contributions. The annual 415(c) limit is measured on a controlled group basis, and doesn’t capture prior contributions to unrelated employers’ plans (like the 402(g) limit does, for deferrals). But keep in mind your 2nd employer’s plan will have a limit (% of compensation-based or potentially a dollar limit) on the after-tax contributions you can make in a given year. There might also be a plan-specific dollar limit on the in-plan Roth rollover amount you can convert annually.
Thank you! This aligns with my (AI) research😁
Definitely some people giving bad advice here. The $24.5k limit for voluntary, pre-tax employee contributions is your total, across all plans in a year. The higher limit ($72k) is per employer, as long as they're unrelated employers (more in-depth explanation of what this means is in the IRS regs).
There's a good explainer on the Whitecoatinvestor Reddit.
Thank you!
Are they wrong in the change of employer scenario? Has anyone had any experience with this?