Does the 401k limit apply if I change jobs?

Question: Does the 401K limit apply if I change jobs? 

I have recently changed jobs and would like to know if the annual limit still applies to my 401(k) For example, year to date, Ie contributed $10,000 to my previous employer’s 401(k) plan. Does this mean my 401(k) contribution for the year with the new employer should be less than $7,000? Thanks you for responding.

Answer:

Yes, you are given an annual limit for 401(k) contributions. You would not be able to contribute up to the maximum amount for both employers. You should also inform your employer how much you contributed with your previous employer so you don’t exceed the limit.

Read more about 401k Contribution Limits for 2012 and 2013.

Know better? Leave your own answer in the comments!

One Response to Does the 401k limit apply if I change jobs?

  1. digdowndeepnseattle says:

    yes, you won’t be able to deduct more than 15,500 off your tax return. The $ 15,5000 limit is a personal limit. If you were to try 1) your return would be rejected and 2) you would be penalized for not having the money refunded by April 15.

    Tell your new employer what amount to limit you to based upon your YTD deferrals on your final check ast your previous employer.

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