I can't get a straight answer from HR, so asking here.
I’ve been trying to max out my 401k contributions (including catch-up) the last several years but have been getting dinged due to the highly compensated employee limitation. Last year I scaled back my contributions in line with previous years’ limitations. I’ve also been maxing out my annual Roth contributions in a private account not connected to my employer.
Questions: I recently reset my 2026 contribution to max out at $24.5k 401k and max out the $8k catch-up in the employer Roth option.
– With the 2026 Roth limit of $8,600 (my wife and I meet the income qualifications), does this mean I now can only contribute $600 to my private Roth IRA account (to get to the $8,600 limit)? Or is the 401k Roth catch up considered separate from my standalone Roth IRA?
– Also, will I face the same highly compensated employee issues with this new 401k Roth catch-up contribution?
Thanks!!!
Posted by palmoyas
2 Comments
401k limits are separate from IRA limits. You can do both
Yes, the Roth 401k catchup contributions are subject to top heavy testing. Everything in your company’s 401k plan is included in the test
I can’t speak to the second question, but the 401k Roth and your private Roth IRA are separate limits, you are still clear to contribute the full amount in both.