Bi-Monthly Paycheck: 10/31/2015
This paycheck represents some extra shifts and some holiday pay and admin time. I don’t remember how many hours extra but my base schedule is 7 on and 7 off which normally nets me $8,500.
I am maxing out my 401(k) and getting a 2% match. So far for 2015, my company has contributed nearly $4,000. Even though IRS sets the max amount a person can contribute to their 401(k), they allow the company to contribute extra on the person’s behalf.
My medical group also has contributed nearly $18k in the past 10 months towards my 401(a) (also called money purchase plan). It’s similar to a 401(k) but allows more money to be set aside for “highly compensated employees”. Remember, the total amount you can set aside in retirement accounts is limited by the IRS, $53,000 for 2015, termed contribution limit.
Because the cash balance plan is a hybrid of a defined benefit and a defined contribution plan it doesn’t count towards the contribution limit as discussed above ($53k). The balance of this plan so far is near $19k.