Download your FREE Investor's Guide to Self-Directed IRAs
With a self-directed 401(k) at New Direction IRA, your IRA can invest in the full range of allowable assets:
- real estate
- precious metals
- private equity
- private loans
- ...and more.
Most people simply don’t know that these investments are allowable. Download our free guide and get the facts.
401(k) Contribution Limits & Deadlines
Total employer contributions to a participant’s account, not counting catch-up contributions, cannot exceed $55,000 for 2018.
||Maximum Employee Contribution
(if under age 50)
|Maximum Employee Contribution
(if over age 50)
|Employee Contribution Deadline
||Deferred from last paycheck or Dec. 31, 2018
||Deferred from last paycheck or Dec. 31, 2017
(if under age 50)*
(if over age 50)*
||04/15/2019 (plus extensions)
||04/17/2018 (plus extensions)
The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities.
The owner can contribute both:
Employer non-elective contributions up to:
- Elective deferrals up to 100% of compensation ("taxable compensation" in the case of a self-employed individual) up to the annual contribution limit:
2018: $18,500 or $24,500 if age 50 or over; and
- 25% of compensation as defined by the plan, or for self-employed individuals, see discussion below.
- One can contribute to an IRA, move it into a 401(k) account, and contribute in-full to 401(k). However, not all of the contribution would be a deductible contribution.
- 401(k) employer may make an in-kind contribution to the plan. All other rules still apply - i.e., a disqualified persons may not be securing the loan.
- Employer matching or non-elective contributions are always made "pre-tax." Employers cannot make Roth contributions.