How is PTO cash out from previous employer into 401K impacts my yearly 401K contribution?

[samtx]

I used to work for a state agency. I had accrued $9K worth of PTO from 2019 to 2021 September, which I was given an option to put into 401K on termination.

My new employer also offers 401K. My question is, how does PTO cash out into 401K impacts how much I can contribute in my new employer's 401K. Can I still contribute full $19,500 + $9K or is it $19,500 - $9K, or something else? Thanks

[macuser_22]

If reported in box 12 on your 2021 W-2 as it should be if they treated it as salary ,  then it is part of your contributions and applies to the yearly limit.

Be sure to notify your new employer so that you do not have  excess deferrals.

[samtx]

2021 W2s are not ready that is why i am asking this question here.

[macuser_22]

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@samtx wrote:

2021 W2s are not ready that is why i am asking this question here.

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Ask you prior employer how they will report it.  Nobody here knows.

[samtx]

Already did. Waiting for their response.

I was hoping somebody here may know the answer.

[macuser_22]

How would strangers know how your employer will report it?    However, I would assume that it will be reported as wages and count towards your years total 401(k) contribution limits.