Does money contributed to Pension Retirement Account impacts 401K contribution?

Forum|Forum|4 years ago
October 28, 2021
4 replies
22 views

I used to work for a state agency. As a state employee there was a mandatory 8% contribution to Retirement account.

My new employer offers 401K. My question is, does contributing to Pension Retirement account impacts 401 contribution limit? Thanks

VolvoGirl

Level 15

No.

sdaroraAuthor

Level 3

My last paycheck for September 2021 shows YTD Retirement contribution of 8K. So, that means I can still contribute full $19,500 into new employer's 401K. Is that correct?

Critter-3

Level 15

Did the old employer have a 401K or a 403(b) plan ?

If they are both a 401K then you cannot not exceed the max allowed between both plans ... let the new employer know how much you have already put in and then make sure you don't go over. If you do you must alert the last employer of the excess so it can be removed timely.