If I increase my contribution to my 401(k) account to an amount higher than what my company matches, will I have to pay taxes on the increased amount?

I currently contribute 7.5 percent to my 401(k) account, which my company matches. If I increase my contribution an additional 10 percent (without a match), will that be taxable in 2018?

401(k), Taxes
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April 2018

Your contribution will not be taxable.

In 2018, you can contribute up to $18,500 to your 401(k). If you are age 50 or over, you are allowed to contribute up to an additional $6,000 (a catch-up contribution), or a total of $24,500. These amounts are adjusted for inflation each year. 

Keep in mind that these limits ($18,500/$24,500) only refer to elective deferrals. They do not include other contribution sources like employer matching contributions, nonelective deferrals, or allocations of forfeitures. Including all sources, the 2018 contribution limit for these plans is increasing by $1,000 to $55,000. If applicable, after you add in the catch-up contribution, the total possible overall maximum 2018 contribution is $61,000.

The company match itself only refers to a benefit the company is providing to you. The amount you can contribute to a retirement account on a tax deferred basis is not impacted by your company match unless your total contributions as detailed above exceed the maximum overall contribution amounts of $55,000/$61,000. The size of your company's match sounds quite generous. If you are able to add another 10% above that you will end up contributing 25% of your salary to your retirement account this year. That is quite impressive.

I hope this helps. 

April 2018
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